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Vintage human capital and learning curves

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  • Kredler, Matthias
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    Abstract

    I study a vintage-human-capital model in which long-lived workers accumulate human capital following an exogenous learning curve. Different skill levels inside a vintage are complementary in production; this makes the ex ante homogeneous workers enter different vintages. The continuous-time framework allows me to study the timing decision for the technology phase-out differentially and to derive sharp characterization for wages and the distribution of workers in the dying technology. I show how to posit and solve a planner's problem and construct equilibrium in this way. Consistent with empirical evidence, I show that the experience premium is always positive but diminishes as a technology ages. The connection between workers' learning curves and the technology's progress curve is characterized.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

    Volume (Year): 40 (2014)
    Issue (Month): C ()
    Pages: 154-178

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    Handle: RePEc:eee:dyncon:v:40:y:2014:i:c:p:154-178

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    Web page: http://www.elsevier.com/locate/jedc

    Related research

    Keywords: Vintage human capital; Tenure-wage profiles; Learning curve; Infinite-dimensional state space; Lagrange-multiplier theorem;

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