Why didn't the college premium rise everywhere? : employment protection and on-the-job investment in skills
Matthias Doepke and Ruben Gaetani
Why has the college wage premium risen rapidly in the United States since the 1980s, but not in European economies such as Germany? We argue that differences in employment protection can account for much of the gap. We develop a model in which firms and workers make relationship-specific investments in skill accumulation. The incentive to invest is stronger when employment protection creates an expectation of long-lasting matches. We argue that changes in the economic environment have reduced relationship-specific investment for less-educated workers in the United States, but not for better-protected workers in Germany.
Year of publication: |
[2020]
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Authors: | Doepke, Matthias ; Gaetani, Ruben |
Publisher: |
Berlin, Germany : German Socio-Economic Panel (SOEP), DIW Berlin |
Subject: | Bildungsertrag | Returns to education | Arbeitnehmerschutz | Employment protection | Betriebliches Bildungsmanagement | Employer-provided training | Bildungsinvestition | Human capital investment | USA | United States | Deutschland | Germany | 1981-2013 |
Saved in:
freely available
Extent: | 1 Online-Ressource (circa 55 Seiten) Illustrationen |
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Series: | SOEP papers on multidisciplinary panel data research / German Socio-Economic Panel Study (SOEP), DIW Berlin. - Berlin : DIW, ISSN 1864-6689, ZDB-ID 2403710-2. - Vol. 1093 (2020) |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Graue Literatur ; Non-commercial literature |
Language: | English |
Other identifiers: | hdl:10419/222653 [Handle] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012243654