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The Cyclical Behavior of Skill Acquisition

Author

Listed:
  • David N. DeJong

    (Department of Economics, University of Pittsburgh)

  • Beth F. Ingram

    (Department of Economics, University of Iowa)

Abstract

We use a business cycle model to analyze the general equilibrium implications of a representative agent's decision to devote time to skill acquisition activities, which are modeled as boosting subsequent labor productivity by increasing the stock of human capital. We use aggregate data on consumption, investment, and labor hours to estimate the parameters of the model, and then use the estimated model and the observed data to infer the aggregate behavior of skill acquisition activities. We find that these activities have important cyclical implications and are distinctively countercyclical; they also exhibit a systematic correspondence with college enrollment data. (Copyright: Elsevier)

Suggested Citation

  • David N. DeJong & Beth F. Ingram, 2001. "The Cyclical Behavior of Skill Acquisition," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(3), pages 536-561, July.
  • Handle: RePEc:red:issued:v:4:y:2001:i:3:p:536-561
    DOI: 10.1006/redy.2000.0124
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    on-the-job training; college enrollment; general-equilibrium model; full-information estimation.;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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