Using occupational structure to measure employability with an application to the Brazilian labor market

Sergio Firpo, Sandro Carvalho and Renan Pieri
Additional contact information
Sandro Carvalho: IPEA/DF

The Journal of Economic Inequality, 2016, vol. 14, issue 1, No 1, 19 pages

Abstract: Abstract We propose measuring individual employability as a weighted average across occupations of a worker’s predicted wage for each occupation. Weights are given by the individual occupational probability distribution. Under this measure, a worker is more employable than another if she has a greater chance to obtain a better paid occupation. After normalization, expected employability corresponds to the population correlation between occupational predicted wages and the chance to obtain employment in these occupations and serves as a measure of the allocative efficiency of labor market. We apply the methodology to Brazil and found that employability increased and became less unequally distributed from 2002 to 2011. We used a decomposition method to investigate the causes of these changes. Although average normalized employability is weakly positive, it has increased for the period, which suggests that there is room for efficiency gains in the allocation of workers to occupations in the Brazilian labor market.

Keywords: Employability; Occupations; Wages; Allocative Efficiency; Brazilian Labor Market (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10888-015-9313-3 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Using occupational structure to measure employability with an application to the Brazilian labor market (2016)
Journal Article: Using occupational structure to measure employability with an application to the Brazilian labor market (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jecinq:v:14:y:2016:i:1:d:10.1007_s10888-015-9313-3

Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10888/PS2

DOI: 10.1007/s10888-015-9313-3

Access Statistics for this article

The Journal of Economic Inequality is currently edited by Stephen Jenkins

More articles in The Journal of Economic Inequality from Springer, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().