Search, Matching and Training

74 Pages Posted: 26 Sep 2016

See all articles by Christopher J. Flinn

Christopher J. Flinn

New York University -Leonard N. Stern School of Business - Department of Economics; IZA Institute of Labor Economics

Ahu Gemici

New York University (NYU) - Department of Economics

Steven Laufer

Board of Governors of the Federal Reserve System

Date Written: 2016-07-13

Abstract

We estimate a partial and general equilibrium search model in which firms and workers choose how much time to invest in both general and match-specific human capital. To help identify the model parameters, we use NLSY data on worker training and we match moments that relate the incidence and timing of observed training episodes to outcomes such as wage growth and job-to-job transitions. We use our model to offer a novel interpretation of standard Mincer wage regressions in terms of search frictions and returns to training. Finally, we show how a minimum wage can reduce training opportunities and decrease the amount of human capital in the economy.

Keywords: Minimum Wage, On-the-job training, Wage growth

JEL Classification: J64, J24

Suggested Citation

Flinn, Christopher J. and Gemici, Ahu and Laufer, Steven, Search, Matching and Training (2016-07-13). FEDS Working Paper No. 2016-075. Available at SSRN: https://ssrn.com/abstract=2842934 or http://dx.doi.org/10.17016/FEDS.2016.075

Christopher J. Flinn (Contact Author)

New York University -Leonard N. Stern School of Business - Department of Economics ( email )

269 Mercer Street
New York, NY 10003
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ahu Gemici

New York University (NYU) - Department of Economics ( email )

269 Mercer Street, 7th Floor
New York, NY 10011
United States

Steven Laufer

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
202-475-6608 (Phone)
202-728-5889 (Fax)

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