IDEAS home Printed from https://ideas.repec.org/p/ucr/wpaper/201707.html
   My bibliography  Save this paper

Differences in Skill Loss During Unemployment Across Industries and Occupations

Author

Listed:
  • Victor Ortego-Marti

    () (Department of Economics, University of California Riverside)

Abstract

Starting with Ljungqvist and Sargent (1998) and Pissarides (1992), the search and matching literature has found that skill loss occurring during unemployment has important effects on macroeconomic models of unemployment. This paper presents some evidence that the rate of skill loss varies across occupations and industries. Occupations and industries that require more skills experience higher rates of human capital decay. These findings have important implications for models of equilibrium unemployment, in particular for mismatch unemployment and the optimal reallocation of workers across sectors.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Victor Ortego-Marti, 2017. "Differences in Skill Loss During Unemployment Across Industries and Occupations," Working Papers 201707, University of California at Riverside, Department of Economics.
  • Handle: RePEc:ucr:wpaper:201707
    as

    Download full text from publisher

    File URL: http://economics.ucr.edu/repec/ucr/wpaper/201707.pdf
    File Function: First version, 2017
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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, February.
    2. Laureys, Lien, 2014. "The cost of human capital depreciation during unemployment," LSE Research Online Documents on Economics 86337, London School of Economics and Political Science, LSE Library.
    3. Per-Anders Edin & Magnus Gustavsson, 2008. "Time Out of Work and Skill Depreciation," ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
    4. Charles D. Bailey, 1989. "Forgetting and the Learning Curve: A Laboratory Study," Management Science, INFORMS, vol. 35(3), pages 340-352, March.
    5. Laureys, Lien, 2014. "Optimal monetary policy in the presence of human capital depreciation during unemployment," LSE Research Online Documents on Economics 58006, London School of Economics and Political Science, LSE Library.
    6. Laureys, Lien, 2014. "The cost of human capital depreciation during unemployment," Bank of England working papers 505, Bank of England.
    7. Lars Ljungqvist & Thomas J. Sargent, 1998. "The European Unemployment Dilemma," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 514-550, June.
    8. Ortego-Marti, Victor, 2017. "The Cyclical Behavior Of Unemployment And Vacancies With Loss Of Skills During Unemployment," Macroeconomic Dynamics, Cambridge University Press, pages 1277-1304.
    9. Ay?egül ?ahin & Joseph Song & Giorgio Topa & Giovanni L. Violante, 2014. "Mismatch Unemployment," American Economic Review, American Economic Association, pages 3529-3564.
    10. repec:eee:eecrev:v:100:y:2017:i:c:p:215-235 is not listed on IDEAS
    11. Charlot, Olivier & Decreuse, Bruno, 2001. "Can skill decay increase search effort?," Economics Letters, Elsevier, vol. 71(3), pages 359-362, June.
    12. Ortego-Marti, Victor, 2016. "Unemployment history and frictional wage dispersion," Journal of Monetary Economics, Elsevier, vol. 78(C), pages 5-22.
    13. Steven J. Davis & Till Von Wachter, 2011. "Recessions and the Costs of Job Loss," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(2 (Fall)), pages 1-72.
    14. Volker Tjaden & Felix Wellschmied, 2014. "Quantifying the Contribution of Search to Wage Inequality," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(1), pages 134-161, January.
    15. Nicola Pavoni & G. L. Violante, 2007. "Optimal Welfare-to-Work Programs," Review of Economic Studies, Oxford University Press, vol. 74(1), pages 283-318.
    16. Scott M. Shafer & David A. Nembhard & Mustafa V. Uzumeri, 2001. "The Effects of Worker Learning, Forgetting, and Heterogeneity on Assembly Line Productivity," Management Science, INFORMS, vol. 47(12), pages 1639-1653, December.
    17. Hockenberry, Jason M. & Helmchen, Lorens A., 2014. "The nature of surgeon human capital depreciation," Journal of Health Economics, Elsevier, vol. 37(C), pages 70-80.
    18. Guy David & Tanguy Brachet, 2011. "On the Determinants of Organizational Forgetting," American Economic Journal: Microeconomics, American Economic Association, vol. 3(3), pages 100-123, August.
    19. Ortego-Marti, Victor, 2017. "Loss of skill during unemployment and TFP differences across countries," European Economic Review, Elsevier, vol. 100(C), pages 215-235.
    20. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1371-1391.
    21. Coles, Melvyn & Masters, Adrian, 2000. "Retraining and long-term unemployment in a model of unlearning by not doing," European Economic Review, Elsevier, vol. 44(9), pages 1801-1822, October.
    22. Robert Shimer & Iván Werning, 2006. "On the Optimal Timing of Benefits with Heterogeneous Workers and Human Capital Depreciation," NBER Working Papers 12230, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ucr:wpaper:201707. 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: (Kelvin Mac). General contact details of provider: http://edirc.repec.org/data/deucrus.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.