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Bobba, Matteo, Flabbi, Luca, Levy, Santiago
and Tejada, Mauricio
(2019)
Labor Market Search, Informality, and On-The-Job Human Capital Accumulation.
TSE Working Paper, n. 19-983, Toulouse
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Abstract
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.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | January 2019 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Labor market frictions, Search and matching, Nash bargaining, Informality, On-the-Job human capital accumulation |
| JEL Classification: | J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J3 - Wages, Compensation, and Labor Costs J64 - Unemployment - Models, Duration, Incidence, and Job Search O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements - Legal, Social, Economic, and Political |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 16 Jan 2019 08:43 |
| Last Modified: | 02 Apr 2021 15:59 |
| OAI Identifier: | oai:tse-fr.eu:33230 |
| URI: | https://publications.ut-capitole.fr/id/eprint/30815 |
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- Labor Market Search, Informality, and On-The-Job Human Capital Accumulation. (deposited 16 Jan 2019 08:43) [Currently Displayed]
