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Differences in skill loss during unemployment across industries and occupations

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  • Ortego-Marti, Victor

Abstract

Starting with Ljungqvist and Sargent (1998) and Pissarides (1992), the search and matching literature has found that skill loss occurring during unemployment has important effects on macroeconomic models of unemployment. This paper presents some evidence that the rate of skill loss varies across occupations and industries. Occupations and industries that require more skills experience higher rates of human capital decay. These findings have important implications for models of equilibrium unemployment, in particular for mismatch unemployment and the optimal reallocation of workers across sectors.

Suggested Citation

  • Ortego-Marti, Victor, 2017. "Differences in skill loss during unemployment across industries and occupations," Economics Letters, Elsevier, vol. 161(C), pages 31-33.
    • Handle: RePEc:eee:ecolet:v:161:y:2017:i:c:p:31-33
    DOI: 10.1016/j.econlet.2017.09.006
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    Cited by:

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    2. Balázs Égert & Christine de la Maisonneuve, 2024. "The impact of the war on human capital and productivity in Ukraine," Policy Studies, Taylor & Francis Journals, vol. 45(3-4), pages 282-292, May.
    3. Battisti, Michele & Kinne, Lavinia & Fedorets, Alexandra, 2022. "Cognitive Skills among Adults: An Impeding Factor for Gender Convergence?," VfS Annual Conference 2022 (Basel): Big Data in Economics 264110, Verein für Socialpolitik / German Economic Association.
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    6. Guimarães, Luis & Lourenço, Diogo, 2024. "The Imperfections of Conditional Programs and the Case for Universal Basic Income," MPRA Paper 119964, University Library of Munich, Germany.

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    More about this item

    Keywords

    Search and matching; Unemployment; Loss of skills; Unemployment history; Human capital decay; Mismatch unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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