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Human Capital Mismatches along the Career Path

Author

Listed:
  • Ljubica Nedelkoska

    (Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University Jena)

  • Frank Neffke

    (Erasmus School of Economics, Rotterdam)

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.

Suggested Citation

  • Ljubica Nedelkoska & Frank Neffke, 2010. "Human Capital Mismatches along the Career Path," Jena Economics Research Papers 2010-051, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2010-051
    as

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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2010/wp_2010_051.pdf
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    References listed on IDEAS

    as
    1. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
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    Cited by:

    1. Kadri Kuusk & Mikhail Martynovich, 2018. "What kind of related variety for long-term regional growth?," Papers in Evolutionary Economic Geography (PEEG) 1834, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2018.
    2. Daniela Rohrbach-Schmidt & Michael Tiemann, 2013. "Changes in workplace tasks in Germany—evaluating skill and task measures [Wandel der Tätigkeiten am Arbeitsplatz in Deutschland – Analysen von Skill und Task-Maßen]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(3), pages 215-237, September.
    3. Li, Xing & Guo, Yue & Hou, Jiani & Liu, Jun, 2021. "Human Capital Allocation and Enterprise Innovation Performance: An Example of China's Knowledge-Intensive Service Industry," Research in International Business and Finance, Elsevier, vol. 58(C).
    4. Zsolt Csafordi & Laszlo Lorincz & Balazs Lengyel & Karoly Miklos Kiss, 2016. "Productivity spillovers through labor flows: The effect of productivity gap, foreign-owned firms, and skill-relatedness," CERS-IE WORKING PAPERS 1610, Institute of Economics, Centre for Economic and Regional Studies.
    5. Alina Sorgner & Michael Fritsch, 2018. "Entrepreneurial career paths: occupational context and the propensity to become self-employed," Small Business Economics, Springer, vol. 51(1), pages 129-152, June.
    6. Sorgner, Alina & Fritsch, Michael, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79768, Verein für Socialpolitik / German Economic Association.
    7. Zsolt Csáfordi & László Lőrincz & Balázs Lengyel & Károly Miklós Kiss, 2020. "Productivity spillovers through labor flows: productivity gap, multinational experience and industry relatedness," The Journal of Technology Transfer, Springer, vol. 45(1), pages 86-121, February.
    8. Mikhail Martynovich & Josef Taalbi, 2020. "Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010," Papers in Evolutionary Economic Geography (PEEG) 2015, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    9. Krebs, Bennet & Maier, Tobias, 2022. "Die QuBe-Kompetenzklassifikation als verdichtende Perspektive auf berufliche Anforderungen," Wissenschaftliche Diskussionspapiere, Federal Institute for Vocational Education and Training (BIBB), Bonn, volume 127, number 233, July.
    10. Elisabeth Bublitz & Florian Noseleit, 2011. "The Skill Balancing Act: Determinants of and Returns to Balanced Skills," Jena Economics Research Papers 2011-025, Friedrich-Schiller-University Jena.
    11. Alina Sorgner & Michael Fritsch, 2013. "Occupational Choice and Self-Employment - Are They Related?," Jena Economics Research Papers 2013-001, Friedrich-Schiller-University Jena.

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    More about this item

    Keywords

    skill mismatch; skill transferability; occupational change; human capital; wages;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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