Silos, P and Smith, E (2012) Human capital portfolios. UNSPECIFIED. Federal Reserve Bank of Atlanta ,Working Papers, 2012-03.
Silos, P and Smith, E (2012) Human capital portfolios. UNSPECIFIED. Federal Reserve Bank of Atlanta ,Working Papers, 2012-03.
Silos, P and Smith, E (2012) Human capital portfolios. UNSPECIFIED. Federal Reserve Bank of Atlanta ,Working Papers, 2012-03.
Abstract
This paper assesses the trade-off between acquiring specialized skills targeted for a particular occupation and acquiring a package of skills that diversifies risk across occupations. Individual-level data on college credits across subjects and labor-market dynamics reveal that diversification generates higher income growth for individuals who switch occupations whereas specialization benefits those who stick with one type of job. A human capital portfolio choice problem featuring skills, abilities, and uncertain labor outcomes replicates this general pattern and generate a sizable amount of inequality. Policy experiments illustrate that forced specialization generates lower average income growth and lower turnover, but also lower inequality.
Item Type: | Monograph (UNSPECIFIED) |
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Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 03 Jul 2012 11:07 |
Last Modified: | 16 May 2024 18:36 |
URI: | http://repository.essex.ac.uk/id/eprint/2662 |