Data and Code for: Changing Tracks: Human Capital Investment after Loss of Ability

Principal Investigator(s): View help for Principal Investigator(s) Pernille Plato, University of Copenhagen; Anders Humlum, University of Chicago. Booth School of Business; Jakob Roland Munch, University of Copenhagen

Version: View help for Version V1

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Project Description

Summary:

We provide the first evidence on how workers invest in human capital after losing

ability. Using quasi-random work accidents in Danish administrative data, we find

that workers enroll in bachelor’s programs after physical injuries, pursuing degrees

that build on their past training and experience. Exploiting institutional differences

in the stackability of degrees, we find that higher education moves injured

workers from disability benefits to full-time employment, earning 25% more than

before injury. Reskilling subsidies for injured workers pay for themselves four times

over, and current rates of reskilling are substantially below the social optimum,

especially for middle-aged workers.

Scope of Project

Subject Terms: reskilling; occupational transition; disabilities; career shocks

JEL Classification:
      I26 Returns to Education
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J62 Job, Occupational, and Intergenerational Mobility; Promotion

Geographic Coverage: Denmark

Universe: Universe of the Danish Population

Data Type(s): aggregate data; program source code

Related Publications

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Published Versions

V1 [2025-03-26]

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