TY  - RPRT
CY  - Toulouse
ID  - publications30815
UR  - http://tse-fr.eu/pub/33230
A1  - Bobba, Matteo
A1  - Flabbi, Luca
A1  - Levy, Santiago
A1  - Tejada, Mauricio
Y1  - 2019/01//
N2  - We develop a search and matching model where firms and workers produce output that depends both on match-specific productivity and on worker-specific human capital. The human capital is accumulated while working but depreciates while searching for a job. Jobs can be formal or informal and firms post the formality status. The equilibrium is characterized by an endogenous steady state distribution of human capital and by an endogenous formality rate. The model is estimated on longitudinal labor market data for Mexico. Human capital accumulation on-the-job is responsible for more than half of the overall value of production and upgrades more quickly while working formally than informally. Policy experiments reveal that the dynamics of human capital accumulation magnifies the negative impact on productivity of the labor market institutions that give raise to informality.
PB  - TSE Working Paper
T3  - TSE Working Paper
KW  - Labor market frictions
KW  - Search and matching
KW  - Nash bargaining
KW  - Informality
KW  - On-the-Job human capital accumulation
M1  - working_paper
TI  - Labor Market Search, Informality, and On-The-Job Human  Capital Accumulation
AV  - public
EP  - 39
ER  -