People at the top of an occupational ladder earn more partly because they have spent time on lower rungs, where they have learned something. But what precisely do they learn? There are two contrasting views: First, the "Bandit" model assumes that people are different, that experience reveals their caracteristics, and that consequently an occupational switch can result. Second, in our "Stepping Stone" model, experience raises a worker's productivity on a given task and the acquired skill can in part be transferred to other occupations, and this prompts movement.
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Paper provided by C.V. Starr Center for Applied Economics, New York University in its series Working Papers with number
96-26.
Find related papers by JEL classification: C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Bayesian Analysis D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
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