IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/v101y1993i1p73-99.html
   My bibliography  Save this article

Accumulation of Human Capital and the Business Cycle

Author

Listed:
  • Fukao, Kyoji
  • Otaki, Masayuki

Abstract

Characteristics of business cycles are quite different across developed countries. Real wages and working hours a re less sensitive to exogenous shocks in the United States than in Brit ain and Japan. Using a model with a microeconomic foundation, this paper provides an economic explanation of these differences. The cost of on-the-job training plays a crucial role. Workers seldom quit their jobs when the sunk training cost is high. In such economies, varianc es in employment and output become small and shocks tend to be absorbed by working hours and real wages. Thus, these characteristics do not necessarily indicate that the economy is more efficient. Copyright 1993 by University of Chicago Press.

Suggested Citation

  • Fukao, Kyoji & Otaki, Masayuki, 1993. "Accumulation of Human Capital and the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 73-99, February.
  • Handle: RePEc:ucp:jpolec:v:101:y:1993:i:1:p:73-99
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/261866
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kawai, Eizo, 2001. "Re-examination of wage, employment, and hours adjustments: what is crucial for differences in the adjustments?," Japan and the World Economy, Elsevier, vol. 13(4), pages 483-497, December.
    2. Shin-ichi Fukuda & Robert F. Owen, 2008. "Human Capital and Economic Growth: Dynamic Implications of Insider-outsider Problem for Macroeconomics," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 4(1), pages 133-158, December.
    3. Fabio MĂ©ndez & Facundo SepĂșlveda, 2012. "The Cyclicality of Skill Acquisition: Evidence from Panel Data," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 128-152, July.
    4. repec:sls:ipmsls:v:33:y:2017:6 is not listed on IDEAS
    5. Kozo Kiyota & Toshiyuki Matsuura, 2006. "Employment of MNEs in Japan: New Evidence," Discussion papers 06014, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:101:y:1993:i:1:p:73-99. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division). General contact details of provider: http://www.journals.uchicago.edu/JPE/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.