How General is Specific Human Capital? Using Mobility Patterns to Study Skill Transferability in the Labor Market

Previous studies assume that labor market skills are either fully general or specific to a firm. This paper uses patterns in mobility and wages to the transferability of specific skills across occupations. The empirical analysis combines information on tasks performed in different occupations with a large panel on complete work histories and wages. Our results demonstrate that labor market skills are partially transferable across occupations. We find that individuals move to occupations with similar task requirements, and that the distance of moves declines with time in the labor market. Further, tenure in the last occupation affects current wages, and the effect is stronger if the two occupations are similar. We calculate that task-specific human capital is an important source of wage growth, especially for university graduatesHuman Capital

Educational Achievement and Ethnicity in Compulsory Schooling

This paper analyzes the evolution of the attainment gap between white British born and ethnic minority pupils throughout compulsory schooling, from the age of 5 to 16. At the start of school, pupils from most ethnic groups substantially lag behind White British pupils, but these gaps decline for all groups throughout primary and secondary school. Language is the single most important factor why most ethnic minority pupils improve relative to White British pupils. Although poverty explains part of the differences in levels, it cannot explain why ethnic minority pupils gain relative to or even overtake White British pupils. All ethnic minority groups initially attend worse performing schools than White British pupils. However, more than 20 percent of the subsequent relative improvement can be attributed to ethnic minority pupils moving up to better schools relative to White British pupils. Finally, our results suggest the possibility that the relative improvement of ethnic minority pupils may be related to teacher incentives to concentrate attention on particular pupils, caused by the publication of school league tables at the end of secondary school.

Referral-based Job Search Networks

This paper develops a model and derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential job market candidates that they otherwise would not have. Using unique matched employeremployee data that cover the entire workforce in one large metropolitan labor market over a 20 year period, we find strong support for the predictions of our model. We first show that firms are more likely to hire minority workers from a particular group if the existing share of workers from that group employed in the firm is higher. We then provide evidence that workers earn higher wages, and are less likely to leave their firms, if they were hired by a firm with a larger share of minority workers from their own group and are therefore more likely to have obtained the job through a referral. The effects are particularly strong at the beginning of the employment relationship and decline with tenure in the firm. These findings have important implications in suggesting that job search networks help to reduce informational deficiencies in the labor market and lead to productivity gains for workers and firms.Networks, Referrals, Uncertainty

The Impact of Immigration: Why Do Studies Reach Such Different Results?

We classify the empirical literature on the wage impact of immigration into three groups, where studies in the first two groups estimate different relative effects, and studies in the third group estimate the total effect of immigration on wages. We interpret the estimates obtained from the different approaches through the lens of the canonical model to demonstrate that they are not comparable. We then relax two key assumptions in this literature, allowing for inelastic and heterogeneous labor supply elasticities of natives and the "downgrading" of immigrants. "Downgrading" occurs when the position of immigrants in the labor market is systematically lower than the position of natives with the same observed education and experience levels. Downgrading means that immigrants receive lower returns to the same measured skills than natives when these skills are acquired in their country of origin. We show that heterogeneous labor supply elasticities, if ignored, may complicate the interpretation of wage estimates, and particularly the interpretation of relative wage effects. Moreover, downgrading may lead to biased estimates in those approaches that estimate relative effects of immigration, but not in approaches that estimate total effects. We conclude that empirical models that estimate total effects not only answer important policy questions, but are also more robust to alternative assumptions than models that estimate relative effects.Jan Stuhler declares that he has received financial support by the Spanish Ministerio Economy Competitividad (Spain, MDM 2014-0431 and ECO2014-55858-P) and Comunidad de Madrid (MadEco-CM S2015/HUM-3444). Christian Dustmann declares that he has received financial support by the Norface Programme on Migration (funded by European national research councils) and the European Research Council, ERC Advanced grant DMEA

Learning, mobility and wage dynamics : theory and evidence

EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Displacement Effects in Manufacturing and Structural Change

We investigate the consequences of structural change for workers displaced from the manufacturing sector. Manufacturing establishments traditionally employed low- and high-wage workers in similar proportions and paid substantial wage premiums to both types of workers. Structural change has led to the disappearance of these jobs, particularly for low-wage workers. Decomposing displacement wage losses, we show that low-wage workers suffer considerable losses in establishment premiums following displacement, whereas high-wage workers tend to fall down the match quality ladder. With ongoing structural change, losses in wages and establishment premiums have increased over time, especially for low-wage workers, in part because they are increasingly forced to switch to low knowledge service jobs where establishment premiums are low. Our findings further highlight that structural change and layoffs in manufacturing have significantly contributed to job polarization and the rise in assortative matching of workers to firms

Referral-based Job Search Networks

This paper develops a model and derives novel testable implications of referral-based job search networks in which employees provide employers with information about potential job market candidates that they otherwise would not have. Using unique matched employeremployee data that cover the entire workforce in one large metropolitan labor market over a 20 year period, we find strong support for the predictions of our model. We first show that firms are more likely to hire minority workers from a particular group if the existing share of workers from that group employed in the firm is higher. We then provide evidence that workers earn higher wages, and are less likely to leave their firms, if they were hired by a firm with a larger share of minority workers from their own group and are therefore more likely to have obtained the job through a referral. The effects are particularly strong at the beginning of the employment relationship and decline with tenure in the firm. These findings have important implications in suggesting that job search networks help to reduce informational deficiencies in the labor market and lead to productivity gains for workers and firms.Networks, Referrals, Uncertainty