Human capital and market size

Cecilia Vives Coscojuela

doi:10.1111/pirs.12336

Human capital and market size

Cecilia Vives Coscojuela^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

This paper studies how the size of the labour market affects workers' decisions to invest in human capital. We consider a model of mismatch where firms rank workers according to their level of skills. The matching process operating in the market has the property that the job finding probability of workers depends on market size, market tightness and their ranking. The model is consistent with several facts highlighted in empirical studies: in bigger markets the distribution of human capital is more unequal and the returns to skill are higher.

Original language	English
Pages (from-to)	75-92
Number of pages	19
Journal	Papers in Regional Science
Volume	98
Issue number	1
DOIs	https://doi.org/10.1111/pirs.12336
Publication status	Published - Feb 2019

Keywords

human capital
skill distribution
city size
matching
CITIES
WAGE
INEQUALITY

Access to Document

10.1111/pirs.12336Licence: CC BY-NC-ND

Cite this

@article{26e954a98cb94c4180ccb2fb8d7617b8,

title = "Human capital and market size",

abstract = "This paper studies how the size of the labour market affects workers' decisions to invest in human capital. We consider a model of mismatch where firms rank workers according to their level of skills. The matching process operating in the market has the property that the job finding probability of workers depends on market size, market tightness and their ranking. The model is consistent with several facts highlighted in empirical studies: in bigger markets the distribution of human capital is more unequal and the returns to skill are higher.",

keywords = "human capital, skill distribution, city size, matching, CITIES, WAGE, INEQUALITY",

author = "{Vives Coscojuela}, Cecilia",

note = "Data Source: Data sets: {"}Jobseekers Allowance{"} and {"}Jobcentre vacancies{"}. Source: NOMIS ",

year = "2019",

month = feb,

doi = "10.1111/pirs.12336",

language = "English",

volume = "98",

pages = "75--92",

journal = "Papers in Regional Science",

issn = "1056-8190",

publisher = "Elsevier B.V.",

number = "1",

}

TY - JOUR

T1 - Human capital and market size

AU - Vives Coscojuela, Cecilia

N1 - Data Source: Data sets: "Jobseekers Allowance" and "Jobcentre vacancies". Source: NOMIS

PY - 2019/2

Y1 - 2019/2

N2 - This paper studies how the size of the labour market affects workers' decisions to invest in human capital. We consider a model of mismatch where firms rank workers according to their level of skills. The matching process operating in the market has the property that the job finding probability of workers depends on market size, market tightness and their ranking. The model is consistent with several facts highlighted in empirical studies: in bigger markets the distribution of human capital is more unequal and the returns to skill are higher.

AB - This paper studies how the size of the labour market affects workers' decisions to invest in human capital. We consider a model of mismatch where firms rank workers according to their level of skills. The matching process operating in the market has the property that the job finding probability of workers depends on market size, market tightness and their ranking. The model is consistent with several facts highlighted in empirical studies: in bigger markets the distribution of human capital is more unequal and the returns to skill are higher.

KW - human capital

KW - skill distribution

KW - city size

KW - matching

KW - CITIES

KW - WAGE

KW - INEQUALITY

U2 - 10.1111/pirs.12336

DO - 10.1111/pirs.12336

M3 - Article

SN - 1056-8190

VL - 98

SP - 75

EP - 92

JO - Papers in Regional Science

JF - Papers in Regional Science

IS - 1

ER -

Human capital and market size

Abstract

Keywords

Access to Document

Fingerprint

Cite this