Abstract
This study analyzes how the intensive use of firm specific human capital in firms affects the unemployment rate. For this purpose, I introduce into an equilibrium search model the possibility that workers quit their jobs. A worker changes his job when a firm that newly enters into the market offers a higher wage than his current wage. If firm specific human capital is important, it is difficult for a worker to quit his job, and, in consequence, the number of workers who quit their jobs is small. Thus, the unemployment rate is low. If the speed of technology obsolescence is high, the unemployment rate is high.
| Original language | English |
|---|---|
| Pages (from-to) | 35-44 |
| Number of pages | 10 |
| Journal | Japan and the World Economy |
| Volume | 14 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2002 |
| Externally published | Yes |
Fingerprint
Keywords
- Firm specific human capital
- Quit
- Search
- Technology obsolescence
- Unemployment
ASJC Scopus subject areas
- Economics and Econometrics
- Finance
Cite this
Firm specific human capital and unemployment in a growing economy. / Higashi, Youichirou.
In: Japan and the World Economy, Vol. 14, No. 1, 2002, p. 35-44.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Firm specific human capital and unemployment in a growing economy
AU - Higashi, Youichirou
PY - 2002
Y1 - 2002
N2 - This study analyzes how the intensive use of firm specific human capital in firms affects the unemployment rate. For this purpose, I introduce into an equilibrium search model the possibility that workers quit their jobs. A worker changes his job when a firm that newly enters into the market offers a higher wage than his current wage. If firm specific human capital is important, it is difficult for a worker to quit his job, and, in consequence, the number of workers who quit their jobs is small. Thus, the unemployment rate is low. If the speed of technology obsolescence is high, the unemployment rate is high.
AB - This study analyzes how the intensive use of firm specific human capital in firms affects the unemployment rate. For this purpose, I introduce into an equilibrium search model the possibility that workers quit their jobs. A worker changes his job when a firm that newly enters into the market offers a higher wage than his current wage. If firm specific human capital is important, it is difficult for a worker to quit his job, and, in consequence, the number of workers who quit their jobs is small. Thus, the unemployment rate is low. If the speed of technology obsolescence is high, the unemployment rate is high.
KW - Firm specific human capital
KW - Quit
KW - Search
KW - Technology obsolescence
KW - Unemployment
UR - http://www.scopus.com/inward/record.url?scp=0036153711&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0036153711&partnerID=8YFLogxK
U2 - 10.1016/S0922-1425(01)00082-2
DO - 10.1016/S0922-1425(01)00082-2
M3 - Article
VL - 14
SP - 35
EP - 44
JO - Japan and the World Economy
JF - Japan and the World Economy
SN - 0922-1425
IS - 1
ER -