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The estimation methods of occupational skills transferability
[Die Methoden zur Einschätzung der Übertragbarkeit beruflicher Kompetenzen]

Author

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  • Kritkorn Nawakitphaitoon

    (Renmin University of China)

  • Russell Ormiston

    (Allegheny College)

Abstract

This paper compares two estimation methods of occupational skills transferability, both theoretically and empirically. The first method is based on Shaw’s (1984) study, and the second one is based on Ormiston’s (2014) study. The main difference between these two methods is that Shaw’s skills transferability is a “market” approach. It is estimated based on an actual occupational change. On the other hand, Ormiston’s skills transferability is a “skills” approach estimated based on the knowledge, skills, and abilities (KSAs) shared across occupations. Although these two approaches produce very different estimates of occupational skills transferability, both estimates significantly explain the earnings losses of displaced workers. In particular, the displaced workers who find jobs in occupations more similar to their previous jobs, as measured by occupational skills transferability, on average, suffer smaller earnings losses than those who find less similar jobs.

Suggested Citation

  • Kritkorn Nawakitphaitoon & Russell Ormiston, 2016. "The estimation methods of occupational skills transferability [Die Methoden zur Einschätzung der Übertragbarkeit beruflicher Kompetenzen]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 317-327, December.
  • Handle: RePEc:spr:jlabrs:v:49:y:2016:i:4:d:10.1007_s12651-016-0216-y
    DOI: 10.1007/s12651-016-0216-y
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    References listed on IDEAS

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    1. Kathryn L. Shaw, 1984. "A Formulation of the Earnings Function Using the Concept of Occupational Investment," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 319-340.
    2. Gueorgui Kambourov & Iourii Manovskii, 2009. "Occupational Specificity Of Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, February.
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    14. Kritkorn Nawakitphaitoon, 2014. "Occupational Human Capital and Wages: The Role of Skills Transferability Across Occupations," Journal of Labor Research, Springer, vol. 35(1), pages 63-87, March.
    15. Russell Ormiston, 2016. "Does High School Employment Develop Marketable Skills?," Journal of Labor Research, Springer, vol. 37(1), pages 53-68, March.
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    18. Nawakitphaitoon, Kritkorn & Ormiston, Russell, 2015. "Occupational human capital and earnings losses of displaced workers: does the degree of similarity between pre- and post-displacement occupations matter? (Berufliches Humankapital und Einkommensverlus," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 48(1), pages 57-73.
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    Cited by:

    1. Guillermo Montt, 2017. "Field-of-study mismatch and overqualification: labour market correlates and their wage penalty," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-20, December.
    2. Eggenberger, Christian & Rinawi, Miriam & Backes-Gellner, Uschi, 2018. "Occupational specificity: A new measurement based on training curricula and its effect on labor market outcomes," Labour Economics, Elsevier, vol. 51(C), pages 97-107.
    3. Nancy Kracke & Malte Reichelt & Basha Vicari, 2018. "Wage Losses Due to Overqualification: The Role of Formal Degrees and Occupational Skills," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1085-1108, October.
    4. Kracke, Nancy & Reichelt, Malte & Vicari, Basha, 2017. "Wage losses due to overqualification: The role of formal degrees and occupational skills," IAB-Discussion Paper 201710, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Occupational human capital; Skills transferability; Earnings losses;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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