Human Capital Depreciation and Education Level

International Journal of Manpower, 35(5): 613-642.

Posted: 31 Jul 2008 Last revised: 10 Nov 2014

See all articles by Sylvain Weber

Sylvain Weber

University of Neuchatel - Institute for Research in Economics (IRENE)

Date Written: 2014

Abstract

We investigate the link between human capital depreciation and education level through a nonlinear wage equation, using data from the Swiss Labor Force Survey (SLFS) over the period 1998-2008. Instead of using a purely quantitative approach to separate workers by years of education, qualitative aspects of educational system are taken into account. Taking advantage of the Swiss educational system characteristics, workers are separated on the basis of their education type. Workers with vocational education (apprenticeships, professional and technical schools, and universities of applied sciences) are assumed to possess a relatively specific human capital, compared to those with academic education (high schools and universities). Human capital depreciation is found to be significantly related to education type. Academic ("concept-based") education protects workers more effectively against depreciation than vocational ("skill-specific") education.

Keywords: Human capital depreciation, Educational system, Experience-earnings profiles, Nonlinear least squares, Switzerland.

JEL Classification: J24, J31, M53

Suggested Citation

Weber, Sylvain, Human Capital Depreciation and Education Level (2014). International Journal of Manpower, 35(5): 613-642.. Available at SSRN: https://ssrn.com/abstract=1114483 or http://dx.doi.org/10.2139/ssrn.1114483

Sylvain Weber (Contact Author)

University of Neuchatel - Institute for Research in Economics (IRENE) ( email )

A.-L. Breguet 2
Neuchatel, 2000
Switzerland
+41327181442 (Phone)

HOME PAGE: http://www2.unine.ch/irene/lang/en/collaborateurs/sylvain_weber

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