Code for: Skill Depreciation during Unemployment: Evidence from Panel Data
Principal Investigator(s): View help for Principal Investigator(s) Attila Lindner, University College London; Andrew Johnston, University of California, Merced; Jonathan Cohen, Amazon
Version: View help for Version V1
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| code_and_data | 09/20/2024 01:00:PM | ||
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application/pdf | 113.5 KB | 09/23/2024 05:18:AM |
Project Citation:
Lindner, Attila, Johnston, Andrew, and Cohen, Jonathan. Code for: Skill Depreciation during Unemployment: Evidence from Panel Data. Nashville, TN: American Economic Association [publisher], 2025. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-06-06. https://doi.org/10.3886/E206041V1
Project Description
Summary:
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We examine the depreciation of skills among unemployed German workers using a panel of skill measures linked to administrative data. Both the reemployment hazard and reemployment earnings steadily decline with unemployment duration. Indicators of depression and loneliness also rise substantially. However, we find no decline in a wide range of cognitive and non-cognitive skills while workers remain unemployed. We find the same pattern in a panel of American workers. The results imply that skill depreciation in general human capital is unlikely to be a major explanation for observed duration dependence in reemployment outcomes.
Funding Sources:
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European Research Council (949995);
Economic and Social Research Council (ES/T008474/1);
US Social Security Administration (DR18000003)
Scope of Project
JEL Classification:
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J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J64 Unemployment: Models, Duration, Incidence, and Job Search
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J64 Unemployment: Models, Duration, Incidence, and Job Search
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