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Author: Hernandez Martinez, Victor
Resulting in 2 citations.
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Hernandez Martinez, Victor |
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Essays in Labor and Public Economics Ph.D. Dissertation, School of Arts and Sciences, University of Rochester, 2021 Cohort(s): NLSY79, NLSY97 Publisher: ProQuest Dissertations & Theses (PQDT) Keyword(s): Displaced Workers; Earnings; Human Capital; Occupational Information Network (O*NET); Occupations; Work Histories Permission to reprint the abstract has not been received from the publisher. Chapter 2 provides an alternative approach to define the specificity of human capital, based on how concentrated, or specialized, is the knowledge used in an occupation. I combine this new measure with individual labor histories from the NLSY79-97 to analyze the heterogeneity of earning losses following an exogenous displacement. I provide evidence that, holding any other individual and aggregated characteristics constant, greater levels of knowledge specialization at displacement are associated with significantly larger earning losses, in the range of an additional 5 to 9 pp for an individual in the 75th percentile of knowledge specialization vs the 25th percentile. This larger losses do not seem to be driven by longer periods of unemployment or longer distance (in the task space) occupational moves following displacement. In addition, I show that the loss premia associated with changing industries/occupations post displacement is almost fully driven by higher specialization levels. For low specialization levels, industry/occupational changes imply relatively small additional losses after the first year. Furthermore, I do not find evidence of negative effect of higher pre displacement specialization on earning losses for those who remain in the same industry or occupation. |
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Bibliography Citation
Hernandez Martinez, Victor. Essays in Labor and Public Economics. Ph.D. Dissertation, School of Arts and Sciences, University of Rochester, 2021. |
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Hernandez Martinez, Victor Holter, Hans Aasnes Pinheiro, Roberto |
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The Hedgehog's Curse: Knowledge Specialization and Displacement Loss Working Paper 22-31, Federal Reserve Bank of Cleveland, November 2022. Also: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4273012 Cohort(s): NLSY79, NLSY97 Publisher: Federal Reserve Bank of Cleveland Keyword(s): Cross-national Analysis; Displaced Workers; Earnings; Human Capital; Norway, Norwegian Permission to reprint the abstract has not been received from the publisher. This paper studies the impact of knowledge specialization on earnings losses following displacement. We develop a novel measure of the specialization of human capital, based on how concentrated the knowledge used in an occupation is. Combining our measure with individual labor histories from the NLSY 79-97 and Norway's LEED, we show that workers with more specialized human capital suffer larger earnings losses following exogenous displacement. A one standard deviation increase in pre-displacement knowledge specialization increases the earnings losses post-displacement by 3 to 4 pp per year in the US, and by 1.5 to 2 pp per year in Norway. In the US, the negative effect of higher pre-displacement knowledge specialization on post-displacement earnings is driven by the negative impact of knowledge specialization on well-paid outside opportunities. By contrast, this association between outside opportunities and knowledge specialization plays no role in post-displacement earnings losses in Norway, where the negative effect of specialization is in part explained by its association with the routine content and the offshoring probability of the occupation. |
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Bibliography Citation
Hernandez Martinez, Victor, Hans Aasnes Holter and Roberto Pinheiro. "The Hedgehog's Curse: Knowledge Specialization and Displacement Loss." Working Paper 22-31, Federal Reserve Bank of Cleveland, November 2022. |