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Occupation-Specific Human Capital and Local Labor Markets

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Author Info
Jeffrey A. Groen () (U.S. Bureau of Labor Statistics)
Abstract

Most skills acquired through on-the-job training may be specific to an occupation and therefore transferable to some but not all firms. This paper explores the relationship between the size of the local market for an occupation-specific skill and job-training outcomes. The Stevens (1994) model of training predicts that as market size increases, job turnover increases and training becomes more general. I test these predictions using data on blue-collar workers and variation in market size across U.S. metropolitan areas. The empirical results support the theoretical predictions and the impacts are most relevant at low levels of market size.

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Paper provided by U.S. Bureau of Labor Statistics in its series Working Papers with number 376.

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Length: 45 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:bls:wpaper:ec050020

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Related research
Keywords: on-the-job training; occupation; human capital; local labor markets; market size;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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  12. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-76, February. [Downloadable!] (restricted)
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  13. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483 Elsevier. [Downloadable!] (restricted)
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  15. Simon, Curtis J, 1988. "Frictional Unemployment and the Role of Industrial Diversity," The Quarterly Journal of Economics, MIT Press, vol. 103(4), pages 715-28, November. [Downloadable!] (restricted)
  16. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1409-1448, November. [Downloadable!] (restricted)
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