Learning, Occupational Choice and Human Capital Accumulation: A Multi-Armed Bandit Approach

Theodore Papageorgiou and Rafael Lopes de Melo

No 1359, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: Our setup follows a large empirical literature that attempts to distinguish between human capital and selection, starting with Abraham and Farber (1987), Altonji and Shakotko (1987), Topel (1990) and later Altonji and Williams (2005) who examine the importance of firm tenure on wages. More recently Kambourov and Manovskii (2009), Gathmann and Schönberg (2010) and Pavan (2011) consider the importance of occupation/industry choice in wage formation. Finally, understanding the importance of human capital and learning in each occupation also contributes to the displacement loss literature (Jacobson et al. (1993)).

Date: 2014
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