edoc

Wages and employment: The role of occupational skills

Girsberger, Esther Mirjam and Rinawi, Miriam and Krapf, Matthias. (2018) Wages and employment: The role of occupational skills. WWZ Working Papers, 2018 (16). Basel.

[img] PDF - Published Version
495Kb

Official URL: https://edoc.unibas.ch/64747/

Downloads: Statistics Overview

Abstract

How skills acquired in vocational education and training (VET) affect wages and employment is not clear. We develop and estimate a search and matching model for workers with a VET degree. Workers differ in interpersonal, cognitive and manual skills, while firms require and value different combinations of these skills. Assuming that match productivity exhibits worker-job complementarity, we estimate how interpersonal, cognitive and manual skills map into job offers, unemployment and wages. We find that firms value cognitive skills on average almost twice as much as interpersonal and manual skills, and they prize complementarity in cognitive and interpersonal skills. The average return to VET skills in hourly wages is 9%, similar to the returns to schooling. Furthermore, VET appears to improve labour market opportunities through higher job arrival rate and lower job destruction. Workers thus have large benefits from acquiring a VET degree.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Angewandte ├ľkonometrie (Schmidheiny)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Krapf, Matthias
Item Type:Working Paper
Publisher:WWZ
Number of Pages:41
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2018/16
Last Modified:22 Jun 2018 08:48
Deposited On:22 Jun 2018 08:48

Repository Staff Only: item control page