TY - JOUR
T1 - Skill flows
T2 - A theory of human capital and unemployment
AU - Doppelt, Ross
N1 - Funding Information:
This work is based on the first chapter of my doctoral thesis at New York University. I thank my thesis committee, Tom Sargent, Ricardo Lagos, and Gianluca Violante, for their feedback. I thank Victoria Gregory for research assistance. I am grateful to Jonathan Heathcote (the editor), two anonymous referees, and many colleagues and seminar participants for valuable discussions and criticisms. Any remaining imperfections are my own. I thank the NSF for financial support through a graduate research fellowship.
Publisher Copyright:
© 2018 Elsevier Inc.
PY - 2019/1
Y1 - 2019/1
N2 - I present a theoretical macroeconomic model that investigates the link between long-run growth and labor-market dynamics. Workers accumulate human capital on the job, while suffering human capital depreciation during unemployment. On the aggregate level, high unemployment hinders skill formation, creating a drag on growth. The model features endogenous growth, stochastic regime shifts, and a time-varying distribution of wages. Nevertheless, much of the model's value comes from the fact that it admits a sharp analytical characterization of the forces at work. I solve for a competitive equilibrium and derive conditions under which it will be efficient.
AB - I present a theoretical macroeconomic model that investigates the link between long-run growth and labor-market dynamics. Workers accumulate human capital on the job, while suffering human capital depreciation during unemployment. On the aggregate level, high unemployment hinders skill formation, creating a drag on growth. The model features endogenous growth, stochastic regime shifts, and a time-varying distribution of wages. Nevertheless, much of the model's value comes from the fact that it admits a sharp analytical characterization of the forces at work. I solve for a competitive equilibrium and derive conditions under which it will be efficient.
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U2 - 10.1016/j.red.2018.12.004
DO - 10.1016/j.red.2018.12.004
M3 - Article
AN - SCOPUS:85059297074
SN - 1094-2025
VL - 31
SP - 84
EP - 122
JO - Review of Economic Dynamics
JF - Review of Economic Dynamics
ER -
