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Search, Matching, and Training

Author

Listed:
  • Christopher Flinn

    (NYU)

  • Ahu Gemici

    (Royal Holloway)

  • Steven Laufer

    (Federal Reserve Board)

Abstract

We estimate a partial and general equilibrium search model in which firms and workers choose how much time to invest in both general and match-specific human capital. To help identify the model parameters, we use NLSY data on worker training and we match moments that relate the incidence and timing of observed training episodes to outcomes such as wage growth and job-to-job transitions. We use our model to offer a novel interpretation of standard Mincer wage regressions in terms of search frictions and returns to training. We use our model estimates to investigate the impact of minimum wages on training and outcomes, and find significant impacts on both of these dimensions for sufficiently high minimum wage values. (Copyright: Elsevier)

Suggested Citation

  • Christopher Flinn & Ahu Gemici & Steven Laufer, 2017. "Search, Matching, and Training," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 25, pages 260-297, April.
  • Handle: RePEc:red:issued:16-105
    DOI: 10.1016/j.red.2017.02.003
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    References listed on IDEAS

    as
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    Cited by:

    1. Matteo Bobba & Luca Flabbi & Santiago Levy & Mauricio Tejada, 2019. "Labor Market Search, Informality, and On-The-Job Human Capital Accumulation," ILADES-UAH Working Papers inv326, Universidad Alberto Hurtado/School of Economics and Business.
    2. Esther Mirjam Girsberger & Miriam Rinawi & Matthias Krapf, 2018. "Wages and employment: The role of occupational skills," Economics of Education Working Paper Series 0153, University of Zurich, Department of Business Administration (IBW).
    3. Christopher Flinn & James Mabli & Joseph Mullins, 2017. "Firms' Choices of Wage-Setting Protocols in the Presence of Minimum Wages," Working Papers 2017-070, Human Capital and Economic Opportunity Working Group.

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    More about this item

    Keywords

    Human capital investment; matching and bargaining; Minimum wage; Wage growth;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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