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Job Matching, Technological Progress And Worker-Provided On-The-Job Training

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  • Mário Centeno
  • Márcio Corrêa

Abstract

According to data from the OCDE, almost one third of the total quantity of on-the-job training is worker-provided. The aim of this paper is to study, in a labor market characterized by frictions, the effects of technological progress on the optimal worker-provided on-the-job training. The paper shows that the greater the technological progress rate less is the probability of the worker investing in specific human capital, if the technology is of creative destruction type, and the greater is the probability of the worker investing specific human capital, if the technology is characterized by renovation; whilst the effect over the general human capital investment doesn't exist in both models. The paper also shows that the impact of human capital investments on labor market outcomes depend on the type of investment - either firm or the market oriented. If the investment is totally aimed at the market, we have as a result an increase in the rate of unemployment, whilst if the investment is totally directed at the firm, we have the opposite effect.

Suggested Citation

  • Mário Centeno & Márcio Corrêa, 2005. "Job Matching, Technological Progress And Worker-Provided On-The-Job Training," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 171, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2005:171
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    Cited by:

    1. Hector Sala & José Silva, 2013. "Labor productivity and vocational training: evidence from Europe," Journal of Productivity Analysis, Springer, vol. 40(1), pages 31-41, August.

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    More about this item

    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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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