UNEMPLOYMENT, HUMAN CAPITAL DEPRECIATION, AND UNEMPLOYMENT INSURANCE POLICY

2012 ◽  
Vol 28 (5) ◽  
pp. 840-863 ◽  
Author(s):  
Andreas Pollak
Keyword(s):  
Human Capital ◽  
Unemployment Insurance ◽  
Insurance Policy ◽  
Capital Depreciation

Optimal Unemployment Insurance with Endogenous Negative Duration Dependence

2016 ◽  
Vol 45 (3) ◽  
pp. 395-422 ◽  
Author(s):  
Brandon Lehr
Keyword(s):  
Human Capital ◽  
Unemployment Insurance ◽  
Firm Behavior ◽  
Correction Term ◽  
Social Optimum ◽  
Duration Dependence ◽  
Insurance Benefit ◽  
The Social ◽  
Capital Depreciation ◽  
The Unemployed

This article characterizes optimal unemployment insurance (UI) in an economy with endogenous negative duration dependence in hiring rates for the unemployed. The characterization generalizes the standard Baily–Chetty result and is independent of the particular mechanism generating endogenous hiring rates. I find that at the social optimum, UI equates the moral hazard cost with the sum of the insurance benefit and a new externality correction term. The sign of this externality correction term depends, in part, on the responsiveness of hiring rates to the UI benefit. I show how the effect of UI on hiring rates in turn depends on the particular assumptions about firm behavior, considering the cases of employer screening and human capital depreciation models.

scholarly journals Human capital depreciation and job tasks

2021 ◽  
Author(s):  
Sonja Walter ◽  
Jeong-Dong Lee
Keyword(s):  
Human Capital ◽  
Industrial Revolution ◽  
Job Tasks ◽  
Core Skill ◽  
Technological Advances ◽  
Education Levels ◽  
Capital Depreciation ◽  
Mincer Equation ◽  
Learning Policies ◽  
Using Data

This research aims to investigate the link between human capital depreciation and job tasks, with an emphasis on potential differences between education levels. We estimate an extended Mincer equation based on Neumann and Weiss’s (1995) model using data from the German Socio-Economic Panel. The results show that human capital gained from higher education levels depreciates at a faster rate than other human capital. Moreover, the productivity-enhancing value of education diminishes faster in jobs with a high share of non-routine analytical, non-routine manual, and routine cognitive tasks. These jobs are characterized by more frequent changes in core-skill or technology-skill requirements. The key implication of this research is that education should focus on equipping workers with more general skills in all education levels. With ongoing technological advances, work environments, and with it, skill demands will change, increasing the importance to provide educational and lifelong learning policies to counteract the depreciation of skills. The study contributes by incorporating a task perspective based on the classification used in works on job polarization. This allows a comparison with studies on job obsolescence due to labor-replacing technologies and enables combined education and labor market policies to address the challenges imposed by the Fourth Industrial Revolution.

Optimal Life Cycle Unemployment Insurance

2015 ◽  
Vol 105 (2) ◽  
pp. 816-859 ◽  
Author(s):  
Claudio Michelacci ◽  
Hernán Ruffo
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Moral Hazard ◽  
Unemployment Insurance ◽  
Older Workers ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Welfare Gains ◽  
High Return ◽  
Unemployment Risk

We argue that US welfare would rise if unemployment insurance were increased for younger and decreased for older workers. This is because the young tend to lack the means to smooth consumption during unemployment and want jobs to accumulate high-return human capital. So unemployment insurance is most valuable to them, while moral hazard is mild. By calibrating a life cycle model with unemployment risk and endogenous search effort, we find that allowing unemployment replacement rates to decline with age yields sizeable welfare gains to US workers. (JEL D91, E24, J13, J64, J65)

The nature of surgeon human capital depreciation

2014 ◽  
Vol 37 ◽  
pp. 70-80 ◽  
Author(s):  
Jason M. Hockenberry ◽  
Lorens A. Helmchen
Keyword(s):  
Human Capital ◽  
Capital Depreciation

scholarly journals On the Determinants of Organizational Forgetting

2011 ◽  
Vol 3 (3) ◽  
pp. 100-123 ◽  
Author(s):  
Guy David ◽  
Tanguy Brachet
Keyword(s):  
Resource Allocation ◽  
Human Capital ◽  
Organizational Learning ◽  
Labor Turnover ◽  
Relative Importance ◽  
Production Experience ◽  
Efficient Resource ◽  
Capital Depreciation ◽  
Organizational Forgetting ◽  
Potential Channels

Studies of organizational learning and forgetting identify potential channels through which the firm's production experience is lost. These channels have differing implications for efficient resource allocation within the firm, but their relative importance has been ignored to date. We develop a framework for distinguishing the contributions of labor turnover and human capital depreciation to organizational forgetting. We apply our framework to a novel dataset of ambulance companies and their workforce. We find evidence of organizational forgetting, which results from skill decay and turnover effects. The latter has twice the magnitude of the former. (JEL D23, D83, J24, J63)

Optimal Unemployment Insurance Policy

1985 ◽  
Vol 33 (2) ◽  
pp. 263-276 ◽  
Author(s):  
Dror Zuckerman
Keyword(s):  
Unemployment Insurance ◽  
Insurance Policy
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