Search Results | VOCEDplus, the international tertiary education and research database

Guided Search / Expert Search

Save search

Gaetani, Ruben

Search found 1 item

Add to My selection

Why didn't the college premium rise everywhere?: employment protection and on-the-job investment in skills

Why has the college wage premium risen rapidly in the United States since the 1980s, but not in European economies ... Show more
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.
Published abstract reprinted by permission of the copyright owner. Show less

Authors: Doepke, Matthias; Gaetani, Ruben

Date: 2020

Geographic subjects: United States; North America; Germany ... [+] Show more

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Qualifications; Labour market; Income ... [+] Show more