Occupational specificity: A new measurement based on training curricula and its effect on labor market outcomes

an article by Christian Eggenberger and Uschi Backes-Gellner (University of Zurich, Switzerland) and Miriam Rinawi (Swiss National Bank, Zurich, Switzerland) published in Labour Economics Volume 51 (April 2018)

Highlights

• We introduce a new empirical measure for the specificity of human capital.
• It uses single skills within occupational training curricula and their bundling.
• We investigate labor market returns of more or less specific training occupations.
• We find a trade-off between occupations with higher returns vs higher flexibility.

Abstract

This paper proposes a new measurement for the specificity of occupations based on a content analysis of training curricula that we link to labor market demands. We apply Lazear's (2009) skill weights approach and test predictions on labor market outcomes derived from his theory.

We find clear evidence of a trade-off between earning higher returns with more specific training and higher occupational mobility with less specific training.

Our measure improves the micro-foundation of human capital specificity and provides an evidence-based approach to evaluate the specificity of training curricula.

JEL Classification: I20, J24, J62

Oh how I wish that I was still involved with classification and specificity of occupations etc. Ah well, I can still read the full article in the British Library and enjoy myself.

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Inequality – ‘wicked problems’, labour market outcomes and the search for silver bullets

an article by Ewart Keep and Ken Mayhew (University of Oxford, UK) published in Oxford Review of Education Volume 40 Number 6 (November 2014)

Abstract

In recent years concerns about inequality have been growing in prominence within UK policy debates. The many causes of inequality of earnings and income are complex in their interactions and their tendency to reinforce one another. This makes inequality an intractable or ‘wicked’ policy problem, particularly within a contemporary context in which many of the established policy responses from previous eras are at best discussed in muted terms and more normally deemed to be unavailable.

This reflects the eclipse of ‘equality of outcome’ models and the concomitant rise of ‘equality of opportunity’ as the new policy mantra from Thatcher onwards. As traditional policy responses have withered, the role of education and training as a ‘silver bullet’ that can address a host of economic and social challenges has come to the fore. This article outlines policy makers’ beliefs that improving the educational attainment of students from lower socio-economic backgrounds can enable them to compete more effectively for elite jobs, and also that increasing the supply of educated employees can transform the level of demand for skills from employers.

These beliefs are then critiqued, with reference to occupational congestion, over-qualification and the evidence that skills supply does not always create its own demand. 

Yes, I know that this is old but still worth reading. Hazel

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