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Title: Earnings Dynamics: The Role of Education Throughout a Worker's Career
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Braga, Breno |
Earnings Dynamics: The Role of Education Throughout a Worker's Career Labour Economics 52 (June 2018): 83-97. Also: https://www.sciencedirect.com/science/article/pii/S0927537118300216 Cohort(s): NLSY79 Publisher: Elsevier Keyword(s): Displaced Workers; Educational Attainment; Wage Dynamics; Wage Growth; Work Experience This paper describes two stylized facts about the earnings dynamics throughout a worker's career. First, this paper shows that more educated workers have higher wage growth with work experience than less educated workers. Second, it demonstrates that more educated workers suffer greater wage losses following job displacement. I propose a model that integrates human capital accumulation and learning mechanisms that can explain these empirical findings. In the model, employers use both education and past job displacement as a signal of a worker's unobservable ability. As a result, educated workers receive more on-the-job training in the beginning of their careers. In addition, educated workers suffer greater wage losses after being laid off when potential employers learn that an educated worker is low ability. |
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Bibliography Citation
Braga, Breno. "Earnings Dynamics: The Role of Education Throughout a Worker's Career." Labour Economics 52 (June 2018): 83-97.
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