Uncertainty in Labor Productivity and Specific Human Capital Investment
Chong-En Bai and
Journal of Labor Economics, 2003, vol. 21, issue 3, 651-676
Uncertainty in labor productivity (ULP) is affected by many factors, such as worker-employer matching, technology, and macroeconomic conditions. Not surprisingly, ULP varies across firms, industries, and economies. How do variations in ULP affect specific human capital (SHC) investment, wage, and labor turnover? A fixed-wage model is used to show that the answer depends critically on the initial level of ULP. The model is also used to show that wage and SHC are always positively correlated, but SHC investment and labor turnover do not have a monotonic relationship. These results have implications for empirical studies and public policies affecting ULP.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1086/374962 main text (application/pdf)
Access to the online full text or PDF requires a subscription.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:21:y:2003:i:3:p:651-676
Access Statistics for this article
More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().