Changing Composition of Human Capital: The Czech Republic, Hungary, and Poland

CERGE-EI Working Paper No. 248

32 Pages Posted: 27 Feb 2005

See all articles by Byeongju Jeong

Byeongju Jeong

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Michal Kejak

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Viatcheslav Vinogradov

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2005

Abstract

We show that the business education/occupations have expanded and that the technical education/occupations have contracted in the Czech Republic and Poland since 1990. We interpret these changes as an adjustment necessary for their transition to a market economy. We do not find the same pattern in Hungary, which we attribute to its earlier timing of transition. We construct an aggregate model in which labor reallocates in response to changing demand structure. When calibrated to the Czech and Polish data, the model generates a large movement of workers with technical education and experience into business occupations in the early 1990s. The discounted sum of output loss due to the gap between the demand structure and the composition of existing human capital amounts to 20 to 40 percent of 1990 GDP.

Keywords: human capital, composition, occupation, education, mobility, transition

JEL Classification: J31, J62, P23, E13

Suggested Citation

Jeong, Byeongju and Kejak, Michal and Vinogradov, Viatcheslav, Changing Composition of Human Capital: The Czech Republic, Hungary, and Poland (January 2005). CERGE-EI Working Paper No. 248, Available at SSRN: https://ssrn.com/abstract=672065 or http://dx.doi.org/10.2139/ssrn.672065

Byeongju Jeong (Contact Author)

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

Michal Kejak

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

Politickych veznu 7
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

Viatcheslav Vinogradov

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

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