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Dislocated Worker Human Capital Depreciation And Recovery, Kevin M. Hollenbeck
Dislocated Worker Human Capital Depreciation And Recovery, Kevin M. Hollenbeck
Upjohn Institute Working Papers
Previous studies have estimated the "human capital depreciation" of women re-entering the work force after voluntary, lengthy interruptions. Those studies have found reduced real wages and furthermore the decrease is positively related to the length of the interruption. Upon re-entry, however, real wages grow rapidly as human capital is restored. This paper develops a model of the wage histories of dislocated workers. Similar to labor force re-entrants, those dislocated workers who become re-employed would experience wages below their final wage prior to dislocation and the decrease should be associated with the length of dislocation. However, the model suggests that since …