Labor market search, informality, and on-the-job human capital accumulation

Matteo Bobba, Luca Flabbi, Santiago Levy and Mauricio Tejada

Journal of Econometrics, 2021, vol. 223, issue 2, 433-453

Abstract: We develop a search and matching model where firms and workers produce output that depends both on match-specific productivity and worker-specific human capital. The human capital is accumulated while working but depreciates while searching for a job. Jobs can be formal or informal. The model is estimated on labor market data for Mexico. Human capital accumulation is responsible for more than half of the overall value of production, and upgrades more quickly while working formally than informally. Policy experiments reveal that human capital accumulation magnifies the negative impact on productivity of the labor market institutions that give rise to informality.

Keywords: Labor market frictions; Search and matching; Nash bargaining; Informality; On-the-job human capital accumulation (search for similar items in EconPapers)
JEL-codes: J24 J3 J64 O17 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Labor market search, informality, and on-the-job human capital accumulation (2021)
Working Paper: Labor Market Search, Informality, and On-The-Job Human Capital Accumulation (2019)
Working Paper: Labor Market Search, Informality, and On-The-Job Human Capital Accumulation (2019)
Working Paper: Labor Market Search, Informality, and On-The-Job Human Capital Accumulation (2019)
Working Paper: Labor Market Search, Informality, and On-The-Job Human Capital Accumulation (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:223:y:2021:i:2:p:433-453

DOI: 10.1016/j.jeconom.2019.05.026

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