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Differences in Skill Loss During Unemployment Across Industries and Occupations

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  • 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.
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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
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    Cited by:

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    2. Balázs Égert & Christine de la Maisonneuve, 2024. "The impact of the war on human capital and productivity in Ukraine," Policy Studies, Taylor & Francis Journals, vol. 45(3-4), pages 282-292, May.
    3. Battisti, Michele & Kinne, Lavinia & Fedorets, Alexandra, 2022. "Cognitive Skills among Adults: An Impeding Factor for Gender Convergence?," VfS Annual Conference 2022 (Basel): Big Data in Economics 264110, Verein für Socialpolitik / German Economic Association.
    4. Jiaqi Ge & Bernardo Alves Furtado, 2024. "Modelling urban transition with coupled housing and labour markets," Environment and Planning B, , vol. 51(3), pages 590-609, March.
    5. Jackson, Paul & Ortego-Marti, Victor, 2024. "Skill loss during unemployment and the scarring effects of the COVID-19 pandemic," Labour Economics, Elsevier, vol. 88(C).
    6. Guimarães, Luis & Lourenço, Diogo, 2024. "The Imperfections of Conditional Programs and the Case for Universal Basic Income," MPRA Paper 119964, University Library of Munich, Germany.
    7. Sun, Ting & Bian, Xuezi & Liu, Jianxu & Wang, Rui & Sriboonchitta, Songsak, 2023. "The economic and social effects of skill mismatch in China: A DSGE model with skill and firm heterogeneity," Economic Modelling, Elsevier, vol. 125(C).

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    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

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