Labor Market Flexibility and General and Firm-specific Skills

The current economy is subject to great uncertainty. Smooth labor reallocations are important. This calls for labor market policies that increase flexibility. Conventional wisdom suggests that such policies will increase general skills and reduce firm-specific skills. This study demonstrates that th...

Full description

Saved in:
Bibliographic Details
Published inAtlantic economic journal Vol. 51; no. 4; pp. 275 - 286
Main Author Shintoyo, Naoki
Format Journal Article
LanguageEnglish
Published New York Springer US 01.12.2023
Springer Nature B.V
Subjects
Economics
Economics and Finance
Employment
Flexibility
Friction
International Economics
Labor market
Macroeconomics/Monetary Economics//Financial Economics
Microeconomics
Occupational mobility
Public Finance
Regression analysis
Skills
Stagnation
Trends
Uncertainty
Unemployment
Wisdom
Workers
Labor market flexibility
Employment stability
General skills
J63
J64
J24
J68
Firm-specific skills
Online AccessGet full text
ISSN0197-4254
1573-9678
DOI10.1007/s11293-023-09783-8

Cover

More Information
Summary:The current economy is subject to great uncertainty. Smooth labor reallocations are important. This calls for labor market policies that increase flexibility. Conventional wisdom suggests that such policies will increase general skills and reduce firm-specific skills. This study demonstrates that this conjecture is not a theoretical necessity. Indeed, increased labor market flexibility can depress both general and firm-specific skills. If flexibility increases in the experienced worker market, general and firm-specific skills increase or decrease simultaneously. The reason for this surprising outcome emerges from the model.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ISSN:0197-4254
1573-9678
DOI:10.1007/s11293-023-09783-8