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Search, Matching and Training

Author

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  • Christopher J. Flinn
  • Ahu Gemici
  • Steven Laufer

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. Finally, we show how a minimum wage can reduce training opportunities and decrease the amount of human capital in the economy.

Suggested Citation

  • Christopher J. Flinn & Ahu Gemici & Steven Laufer, 2016. "Search, Matching and Training," Finance and Economics Discussion Series 2016-075, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfe:2016-75
    DOI: 10.17016/FEDS.2016.075
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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

    Minimum Wage; On-the-job training; Wage growth;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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