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Project Citation: 

Doepke, Matthias, and Gaetani, Ruben. Data and code for: Why Didn’t the College Premium Rise Everywhere? Employment Protection and On-the-Job Investment in Skills. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-01-26. https://doi.org/10.3886/E191561V2

Project Description

Summary:  View help for Summary Why has the college wage premium risen rapidly in the United States since the 1980s, but not in European economies such as Germany? We argue that differences in employment protection can account for much of the gap. We develop a model in which firms and workers make relationship-specific investments in skill accumulation. The incentive to invest is stronger when employment protection creates an expectation of long-lasting matches. We argue that changes in the economic environment have reduced relationship-specific investment for less-educated workers in the United States, but not for better-protected workers in Germany.
Funding Sources:  View help for Funding Sources National Science Foundation (SES-1260961)

Scope of Project

Subject Terms:  View help for Subject Terms job skills; labor markets; inequality; labor protection
Geographic Coverage:  View help for Geographic Coverage United States, Germany
Time Period(s):  View help for Time Period(s) 1/1/1981 – 12/31/2013


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