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Skill Obsolescence, Lifelong Learning and Labor Market Participation

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  • Allen Jim
  • Grip Andries de

    (ROA rm)

Abstract

We analyze whether technological change induces skill obsolescence and early labor market exit, and to what extent lifelong learning reduces these risks. Using panel data on older workers, we find that workers report skill obsolescence more often in jobs in which learning is a structural characteristic. However, perceived skill obsolescence has no significant effect on the probability of losing employment. Instead, workers who experience skill obsolescence participate more often in training, which decreases the risk of losing employment. The results are consistent with the dynamic model of skill obsolescence and employment loss developed in this paper. Moreover, we find that when workers with long job tenures decrease their training participation, this is an early indicator of future job loss.

Suggested Citation

  • Allen Jim & Grip Andries de, 2007. "Skill Obsolescence, Lifelong Learning and Labor Market Participation," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  • Handle: RePEc:unm:umaror:2007006
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    References listed on IDEAS

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    1. Campbell, Nigel, 1999. "The decline of employment among older people in Britain," LSE Research Online Documents on Economics 51401, London School of Economics and Political Science, LSE Library.
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    5. Neuman, Shoshana & Weiss, Avi, 1995. "On the effects of schooling vintage on experience-earnings profiles: Theory and evidence," European Economic Review, Elsevier, vol. 39(5), pages 943-955, May.
    6. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-452, July.
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    11. Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March.
    12. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
    13. Loo,J,van & Grip,A.,de & Steur,M.,de, 2001. "Skills Obsolescence: Causes and Cures," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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    Citations

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    Cited by:

    1. Francesca Sgobbi, 2016. "Train the worst or train the best? The determinants of employer-sponsored training in five European countries," Working Papers 29, Birkbeck Centre for Innovation Management Research, revised Jan 2016.
    2. Didier Fouarge & Andries Grip & Wendy Smits & Robert Vries, 2012. "Flexible Contracts and Human Capital Investments," De Economist, Springer, vol. 160(2), pages 177-195, June.
    3. McGuinness, Seamus & Pouliakas, Konstantinos & Redmond, Paul, 2017. "How Useful Is the Concept of Skills Mismatch?," IZA Discussion Papers 10786, Institute of Labor Economics (IZA).
    4. Andries de Grip & Wendy Smits, 2012. "What affects lifelong learning of scientists and engineers?," International Journal of Manpower, Emerald Group Publishing, vol. 33(5), pages 583-597, August.
    5. Grip Andries de, 2006. "Evaluating Human Capital Obsolescence," ROA Working Paper 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    6. Nathalie Greenan & Mathieu Narcy & Stéphane Robin, 2013. "Changements dans les entreprises et accès des seniors à la formation continue : une comparaison entre les années 1990 et 2000," Working Papers halshs-00965730, HAL.
    7. Ludwig Volker & Pfeiffer Friedhelm, 2006. "Abschreibungsraten allgemeiner und beruflicher Ausbildungsinhalte - empirische Evidenz auf Basis subjektiver Einschätzungen / Depreciation Rates of General and Vocational Training Capital - Evidence B," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(3), pages 260-284, June.
    8. repec:bla:jecsur:v:32:y:2018:i:4:p:985-1015 is not listed on IDEAS
    9. Inés P. Murillo, 2011. "Human capital obsolescence: some evidence for Spain," International Journal of Manpower, Emerald Group Publishing, vol. 32(4), pages 426-445, July.

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    Keywords

    education; training and the labour market;

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