Job Displacement and Earnings Loss: Evidence from the Displaced Worker Survey

ILR Review ◽  
1987 ◽  
Vol 41 (1) ◽  
pp. 17-29 ◽  
Author(s):  
Michael Podgursky ◽  
Paul Swaim
Keyword(s):  
Population Survey ◽  
Job Displacement ◽  
Full Time ◽  
Capital Investments ◽  
Earnings Losses ◽  
Special Supplement ◽  
Human Capital Investments ◽  
Displaced Worker ◽  
Using Data ◽  
Specific Human Capital

Using data from the Displaced Worker Survey, a special supplement to the January 1984 Current Population Survey, the authors estimate a model of reemployment earnings for workers displaced from full-time nonagricultural jobs between January 1979 and January 1984. Median losses for workers reemployed full-time were not large, but a sizable minority of that group—mostly workers with substantial specific human capital investments—experienced large and enduring earnings losses.

scholarly journals Job Ladders and Earnings of Displaced Workers

2017 ◽  
Vol 9 (2) ◽  
pp. 1-31 ◽  
Author(s):  
Pawel Krolikowski
Keyword(s):  
Displaced Workers ◽  
Job Displacement ◽  
Wage Dispersion ◽  
Earnings Losses ◽  
Displaced Worker

Workers who suffer job displacement experience surprisingly large and persistent earnings losses. This paper proposes an explanation for this robust empirical puzzle in a model of search with a significant job ladder and increased separation rates for the recently hired. In addition to capturing the depth and persistence of displaced worker earnings losses, the model matches: employment-to-nonemployment and employer-to-employer probabilities by tenure; the empirical decomposition of earnings losses into reduced wages and employment; observed wage dispersion; and the distribution of wage changes around a nonemployment event. (JEL J31, J63, J64)

Promotion Signaling and Human Capital Investments

2020 ◽  
Vol 12 (1) ◽  
pp. 125-155 ◽  
Author(s):  
Michael Waldman ◽  
Ori Zax
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Capital Investments ◽  
Human Capital Investments ◽  
Asymmetric Learning ◽  
Specific Human Capital ◽  
Investment Choices

In a world characterized by asymmetric learning, promotions can serve as signals of worker ability, and this, in turn, can result in inefficient promotion decisions. If the labor market is competitive, the result will be practices that reduce this distortion. We explore how this logic affects human capital investment decisions. We show that, if commitment is possible, investments will be biased toward the accumulation of firm-specific human capital. We also consider what happens when commitment is not possible and show a number of results including that, if investment choices are not publicly observable, choices are frequently efficient. (JEL D82, J24, J31, M12, M51)

scholarly journals The Returns to Medical School: Evidence from Admission Lotteries

2016 ◽  
Vol 8 (2) ◽  
pp. 225-254 ◽  
Author(s):  
Nadine Ketel ◽  
Edwin Leuven ◽  
Hessel Oosterbeek ◽  
Bas van der Klaauw
Keyword(s):  
Human Capital ◽  
The Netherlands ◽  
Medical School ◽  
Working Hours ◽  
Capital Investments ◽  
Earnings Distribution ◽  
Human Capital Investments ◽  
Using Data

We exploit admission lotteries to estimate the returns to medical school in the Netherlands. Using data from up to 22 years after the lottery, we find that in every single year after graduation doctors earn at least 20 percent more than people who end up in their next-best occupation. Twenty-two years after the lottery the earnings difference is almost 50 percent. Only a small fraction of this difference can be attributed to differences in working hours and human capital investments. The returns do not vary with gender or ability, and shift the entire earnings distribution. (JEL D44, I11, I26, J24, J31, J44)

General versus Specific Skills in Labor Markets with Search Frictions and Firing Costs

2006 ◽  
Vol 96 (3) ◽  
pp. 811-831 ◽  
Author(s):  
Etienne Wasmer
Keyword(s):  
Human Capital ◽  
Labor Markets ◽  
Pure Strategy ◽  
Employment Protection ◽  
Capital Investments ◽  
High Turnover ◽  
Firing Costs ◽  
General Skills ◽  
Human Capital Investments ◽  
Specific Human Capital

Human capital investments are not independent of the aggregate state of labor markets: frictions and slackness of the labor market raise the returns to specific human capital investments relative to general investments. We build a macroeconomic model with two pure strategy regimes. In the pure G-regime, workers invest in general skills. This occurs when they face high turnover labor markets and in the absence of employment protection. The pure 5-regime in which workers invest in skills specific to their job appears when employment protection is high enough. Implications for a characterization of Europe-United States differences are provided in conclusion.

Bank vs. Bond Finance

2015 ◽  
pp. 289-315 ◽  
Author(s):  
Wolfgang Breuer ◽  
Benjamin Quinten ◽  
Astrid J. Salzmann
Keyword(s):  
Future Orientation ◽  
Slight Modification ◽  
Research Field ◽  
Cultural Value ◽  
Relationship Lending ◽  
Capital Investments ◽  
Country Analysis ◽  
Human Capital Investments ◽  
Specific Human Capital ◽  
The Relationship

This chapter enhances the growing research field of Cultural Finance by analyzing the relationship between cultural value types—in particular, Autonomy and Embeddedness—and the corporate debt choice of either bank or bond financing. The authors derive their hypotheses from a slight modification and re-interpretation of the Chemmanur and Fulghieri (1994) approach of “relationship lending.” Referring to the importance of specific human capital investments and individuals' future orientation, they show that firms in autonomy cultures tend toward bank finance, whereas firms in embeddedness cultures show a preference for financing by issuing bonds. In a cross-country analysis with 71 countries, the authors find empirical evidence for their established hypotheses.

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