Career Progression, Economic Downturns, and Skills
Jerome Adda,
Christian Dustmann,
Costas Meghir and
Jean-Marc Robin
No 18832, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
This paper analyzes the career progression of skilled and unskilled workers, with a focus on how careers are affected by economic downturns and whether formal skills, acquired early on, can shield workers from the effect of recessions. Using detailed administrative data for Germany for numerous birth cohorts across different regions, we follow workers from labor market entry onwards and estimate a dynamic life-cycle model of vocational training choice, labor supply, and wage progression. Most particularly, our model allows for labor market frictions that vary by skill group and over the business cycle. We find that sources of wage growth differ: learning-by-doing is an important component for unskilled workers early on in their careers, while job mobility is important for workers who acquire skills in an apprenticeship scheme before labor market entry. Likewise, economic downturns affect skill groups through very different channels: unskilled workers lose out from a decline in productivity and human capital, whereas skilled individuals suffer mainly from a lack of mobility.
JEL-codes: C15 C23 C33 I24 J01 J08 J22 J24 J3 J31 J6 J62 (search for similar items in EconPapers)
Date: 2013-02
New Economics Papers: this item is included in nep-hrm and nep-ltv
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Working Paper: Career Progression, Economic Downturns, and Skills (2013) ![Downloads](/downloads_econpapers.gif)
Working Paper: Career Progression, Economic Downturns and Skills (2013) ![Downloads](/downloads_econpapers.gif)
Working Paper: Career Progression, Economic Downturns and Skills (2013) ![Downloads](/downloads_econpapers.gif)
Working Paper: Career progression, economic downturns and skills (2013) ![Downloads](/downloads_econpapers.gif)
Working Paper: Career progression, economic downturns, and skills (2013) ![Downloads](/downloads_econpapers.gif)
Working Paper: Career Progression, Economic Downturns, and Skills (2013) ![Downloads](/downloads_econpapers.gif)
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