Employment, Skills and Human Capital

Robert Taylor

Journal of Economics and Econometrics, 2015, vol. 58, issue 3, 99-116

Abstract: This paper analyses the importance of human capital in determining the employment and wage across NUTS2 regions of EU Member States. We develop a novel general equilibrium model where skill accumulation through education is costly. Nominal rigidities prevent instantaneous adjustment of wages and prices. Employment is modelled via an estimated wage, where both hiring and firing of workers is a costly process. Our results suggest that regional labour markets are fundamentally different from national labour markets, and region-specific shocks trigger different adjustment mechanisms which are different from national shocks.

Keywords: General equilibrium model; human capital; skills; employment; education; wage. (search for similar items in EconPapers)
JEL-codes: C68 D58 F22 J20 J61 J64 O15 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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