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Occupation-specific human capital and local labour markets

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  • Jeffrey A. Groen

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 US metropolitan areas. The empirical results support the theoretical predictions and the impacts are most relevant at low levels of market size. Copyright 2006, Oxford University Press.

Suggested Citation

  • Jeffrey A. Groen, 2006. "Occupation-specific human capital and local labour markets," Oxford Economic Papers, Oxford University Press, vol. 58(4), pages 722-741, October.
  • Handle: RePEc:oup:oxecpp:v:58:y:2006:i:4:p:722-741
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    File URL: http://hdl.handle.net/10.1093/oep/gpl017
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    Cited by:

    1. Bleakley, Hoyt & Lin, Jeffrey, 2012. "Thick-market effects and churning in the labor market: Evidence from US cities," Journal of Urban Economics, Elsevier, vol. 72(2), pages 87-103.
    2. Derek C. Jones & Panu Kalmi & Antti Kauhanen, 2012. "The effects of general and firm-specific training on wages and performance: evidence from banking," Oxford Economic Papers, Oxford University Press, vol. 64(1), pages 151-175, January.

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