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Human Capital Mismatches along the Career Path

Author

Listed:
  • Ljubica Nedelkoska

    () (Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University Jena)

  • Frank Neffke

    () (Erasmus School of Economics, Rotterdam)

Abstract

Human capital is transferable across occupations, but only to a limited extent because of differences in occupational skill-profiles. Higher skill overlap between occupations renders less of individuals' human capital useless in occupational switches. Current occupational distance measures neglect that differences in skill complexities between occupations yield skill mismatch asymmetric in nature. We propose characterizing occupational switches in terms of human capital shortages and redundancies. This results in superior predictions of individual wages and occupational switches. It also allows identifying career movements up and down an occupational complexity ladder, and assessing the usefulness of accumulated skill-profiles at an individual's current job.

Suggested Citation

  • Ljubica Nedelkoska & Frank Neffke, 2010. "Human Capital Mismatches along the Career Path," Jena Economic Research Papers 2010-051, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2010-051
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    Cited by:

    1. Zsolt Csafordi & Laszlo Lorincz & Balazs Lengyel & Karoly Miklos Kiss, 2016. "Productivity spillovers through labor flows: The effect of productivity gap, foreign-owned firms, and skill-relatedness," IEHAS Discussion Papers 1610, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    2. Michael Fritsch & Alina Sorgner, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," SOEPpapers on Multidisciplinary Panel Data Research 539, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Elisabeth Bublitz & Florian Noseleit, 2011. "The Skill Balancing Act: Determinants of and Returns to Balanced Skills," Jena Economic Research Papers 2011-025, Friedrich-Schiller-University Jena.
    4. Alina Sorgner & Michael Fritsch, 2013. "Occupational Choice and Self-Employment - Are They Related?," Jena Economic Research Papers 2013-001, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    skill mismatch; skill transferability; occupational change; human capital; wages;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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