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Skill Obsolescence, Lifelong Learning and Labor Market Participation

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Author Info
Allen Jim
Grip Andries de (ROA rm)

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Abstract

We analyze whether technological change induces skill obsolescence and early labor market exit, and to what extent lifelong learning reduces these risks. Using panel data on older workers, we find that workers report skill obsolescence more often in jobs in which learning is a structural characteristic. However, perceived skill obsolescence has no significant effect on the probability of losing employment. Instead, workers who experience skill obsolescence participate more often in training, which decreases the risk of losing employment. The results are consistent with the dynamic model of skill obsolescence and employment loss developed in this paper. Moreover, we find that when workers with long job tenures decrease their training participation, this is an early indicator of future job loss.

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Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 006.

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Date of creation: 2007
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Handle: RePEc:dgr:umaror:2007006

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Related research
Keywords: education; training and the labour market;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bartel, Ann P & Sicherman, Nachum, 1993. "Technological Change and Retirement Decisions of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 162-83, January. [Downloadable!] (restricted)
  2. Neuman, Shoshana & Weiss, Avi, 1995. "On the effects of schooling vintage on experience-earnings profiles: Theory and evidence," European Economic Review, Elsevier, vol. 39(5), pages 943-955, May. [Downloadable!] (restricted)
  3. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
  4. Andy Dickerson & Francis Green, 2004. "The growth and valuation of computing and other generic skills," Oxford Economic Papers, Oxford University Press, vol. 56(3), pages 371-406, July. [Downloadable!] (restricted)
  5. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April. [Downloadable!] (restricted)
  6. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October. [Downloadable!]
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  7. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June. [Downloadable!] (restricted)
  8. Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March. [Downloadable!] (restricted)
  9. repec:cep:sticas:019 is not listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Grip Andries de, 2006. "Evaluating Human Capital Obsolescence," Working Papers 001, Maastricht : ROA,Research Centre for Education and the Labour Market. [Downloadable!]
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