Human Capital Mismatches along the Career Path

Ljubica Nedelkoska () and Frank Neffke
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Ljubica Nedelkoska: Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University Jena

No 2010-051, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: Human capital is transferable across occupations, but only to a limited extent because of differences in occupational skill-profiles. Higher skill overlap between occupations renders less of individuals' human capital useless in occupational switches. Current occupational distance measures neglect that differences in skill complexities between occupations yield skill mismatch asymmetric in nature. We propose characterizing occupational switches in terms of human capital shortages and redundancies. This results in superior predictions of individual wages and occupational switches. It also allows identifying career movements up and down an occupational complexity ladder, and assessing the usefulness of accumulated skill-profiles at an individual's current job.

Keywords: skill mismatch; skill transferability; occupational change; human capital; wages (search for similar items in EconPapers)
JEL-codes: J24 J30 J63 (search for similar items in EconPapers)
Date: 2010-08-24
New Economics Papers: this item is included in nep-hrm and nep-lab
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Citations: View citations in EconPapers (14)

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