Career and Skill Formation: A Dynamic Occupational Choice Model With Multidimensional Skills
The objective of the paper is to construct and estimate a dynamic structural model of schooling and occupational choice at the three-digit classification level, in which different occupations involve different mix of tasks. In the model, occupations are characterized by complexity of various tasks. Unlike occupational specific human capital, skills used in one occupation help a worker to enter a new occupation, depending on the similarity of the tasks of the two. Individuals build up their skills in low-paying occupations that provide relevant experience before they enter a high-paying occupation. Hence, low skill occupations can be viewed as “stepping stone” to better occupations. The structural parameters of the model are estimated using the occupational characteristics in the Dictionary of Occupational Titles and the work history in the National Longitudinal Survey of Youth 79. I find that the model does a good job of fitting the data on occupational choices: individuals gradually move from low-skill occupations to high-skill occupations.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James J. Heckman & Lance Lochner & Christopher Taber, 1998.
"Tax Policy and Human Capital Formation,"
NBER Working Papers
6462, National Bureau of Economic Research, Inc.
- Topel, Robert H & Ward, Michael P, 1992.
"Job Mobility and the Careers of Young Men,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 439-79, May.
- Jovanovic, Boyan & Nyarko, Yaw, 1997.
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 46(1), pages 289-325, June.
- Ingram, Beth F. & Neumann, George R., 2006. "The returns to skill," Labour Economics, Elsevier, vol. 13(1), pages 35-59, February.
- Michael P. Keane & Kenneth I. Wolpin, 1995.
"The career decisions of young men,"
559, Federal Reserve Bank of Minneapolis.
- Henry S. Farber & Robert Gibbons, 1991.
"Learning and Wage Dynamics,"
NBER Working Papers
3764, National Bureau of Economic Research, Inc.
- Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
- Rubinstein, Yona & Weiss, Yoram, 2006. "Post Schooling Wage Growth: Investment, Search and Learning," Handbook of the Economics of Education, Elsevier.
- Gueorgui Kambourov & Iourii Manovskii, 2009.
"Occupational Specificity Of Human Capital,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, 02.
- Ronni Pavan, 2011.
"Career Choice and Wage Growth,"
Journal of Labor Economics,
University of Chicago Press, vol. 29(3), pages 549 - 587.
- Gathmann, Christina & Schönberg, Uta, 2006. "How General Is Specific Human Capital?," IZA Discussion Papers 2485, Institute for the Study of Labor (IZA).
- Robert Gibbons & Michael Waldman, 2004. "Task-Specific Human Capital," American Economic Review, American Economic Association, vol. 94(2), pages 203-207, May.
- Donghoon Lee, 2005. "An Estimable Dynamic General Equilibrium Model Of Work, Schooling, And Occupational Choice," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(1), pages 1-34, 02.
When requesting a correction, please mention this item's handle: RePEc:red:sed007:729. 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: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.