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Differences in skill loss during unemployment across industries and occupations

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  • Ortego-Marti, Victor

Abstract

Starting with Ljungqvist and Sargent (1998) and Pissarides (1992), the search and matching literature has found that skill loss occurring during unemployment has important effects on macroeconomic models of unemployment. This paper presents some evidence that the rate of skill loss varies across occupations and industries. Occupations and industries that require more skills experience higher rates of human capital decay. These findings have important implications for models of equilibrium unemployment, in particular for mismatch unemployment and the optimal reallocation of workers across sectors.

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  • Ortego-Marti, Victor, 2017. "Differences in skill loss during unemployment across industries and occupations," Economics Letters, Elsevier, vol. 161(C), pages 31-33.
    • Handle: RePEc:eee:ecolet:v:161:y:2017:i:c:p:31-33
    DOI: 10.1016/j.econlet.2017.09.006
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    Cited by:

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    2. Balázs Égert & Christine de la Maisonneuve & Balazs Egert, 2023. "The Impact of the War on Human Capital and Productivity in Ukraine," CESifo Working Paper Series 10513, CESifo.
    3. Guimarães, Luis & Lourenço, Diogo, 2024. "The Imperfections of Conditional Programs and the Case for Universal Basic Income," MPRA Paper 119964, University Library of Munich, Germany.
    4. Sun, Ting & Bian, Xuezi & Liu, Jianxu & Wang, Rui & Sriboonchitta, Songsak, 2023. "The economic and social effects of skill mismatch in China: A DSGE model with skill and firm heterogeneity," Economic Modelling, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Search and matching; Unemployment; Loss of skills; Unemployment history; Human capital decay; Mismatch unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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