Career Progression, Economic Downturns, and Skills /
Adda, Jerome.
Career Progression, Economic Downturns, and Skills / Jerome Adda, Christian Dustmann, Costas Meghir, Jean-Marc Robin. - Cambridge, Mass. National Bureau of Economic Research 2013. - 1 online resource: illustrations (black and white); - NBER working paper series no. w18832 . - Working Paper Series (National Bureau of Economic Research) no. w18832. .
February 2013.
This paper analyzes the career progression of skilled and unskilled workers, with a focus on how careers are affected by economic downturns and whether formal skills, acquired early on, can shield workers from the effect of recessions. Using detailed administrative data for Germany for numerous birth cohorts across different regions, we follow workers from labor market entry onwards and estimate a dynamic life-cycle model of vocational training choice, labor supply, and wage progression. Most particularly, our model allows for labor market frictions that vary by skill group and over the business cycle. We find that sources of wage growth differ: learning-by-doing is an important component for unskilled workers early on in their careers, while job mobility is important for workers who acquire skills in an apprenticeship scheme before labor market entry. Likewise, economic downturns affect skill groups through very different channels: unskilled workers lose out from a decline in productivity and human capital, whereas skilled individuals suffer mainly from a lack of mobility.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Career Progression, Economic Downturns, and Skills / Jerome Adda, Christian Dustmann, Costas Meghir, Jean-Marc Robin. - Cambridge, Mass. National Bureau of Economic Research 2013. - 1 online resource: illustrations (black and white); - NBER working paper series no. w18832 . - Working Paper Series (National Bureau of Economic Research) no. w18832. .
February 2013.
This paper analyzes the career progression of skilled and unskilled workers, with a focus on how careers are affected by economic downturns and whether formal skills, acquired early on, can shield workers from the effect of recessions. Using detailed administrative data for Germany for numerous birth cohorts across different regions, we follow workers from labor market entry onwards and estimate a dynamic life-cycle model of vocational training choice, labor supply, and wage progression. Most particularly, our model allows for labor market frictions that vary by skill group and over the business cycle. We find that sources of wage growth differ: learning-by-doing is an important component for unskilled workers early on in their careers, while job mobility is important for workers who acquire skills in an apprenticeship scheme before labor market entry. Likewise, economic downturns affect skill groups through very different channels: unskilled workers lose out from a decline in productivity and human capital, whereas skilled individuals suffer mainly from a lack of mobility.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.