Applied Micro Seminar : Every Tuesday
Time: 12:15 pm – 13:30 pm
Date: 24th of September
Room : 3001

Dita ECKHARDT (University of Warwick) – “Labor Market Entry Conditions and Occupational Mismatch: Evidence from Apprenticeship Graduates”

Abstract :“Using administrative data on the largest group of labor market entrants in Germany – graduates from an apprenticeship in a specific occupation – this paper studies the effect of entry conditions on occupational mismatch. I find that higher entry unemployment leads to persistent earnings losses that are almost entirely driven by full-time wage effects. At the same time, occupational matching, as measured by the likelihood of working in the training occupation or the task similarity between training and occupation, persistently falls. Occupational mismatch accounts for around 20% of the estimated wage effects. A conceptual framework sheds light on underlying mechanisms. Lower levels of matching arise from skill-specific shocks, caused by either changes in occupation-specific demand or lower retention rates by training firms. The framework entails empirical predictions that I test using novel data on occupation-specific unemployment. The findings point to long-term productivity effects from initial conditions and indicate that a third of matching responses is caused by occupation-specific shocks.”

Organizers:

Benoît SCHMUTZ (Pôle d’économie du CREST)

Roland RATHELOT (Pôle d’économie du CREST)

Clément MALGOUYRES (Pôle d’économie du CREST)

Sponsors:
CREST