Skills at work: an analysis of the interaction between training and occupations in the labour market

Lead Research Organisation: Institute for Fiscal Studies
Department Name: IFS Research Team

Abstract

My research explores policy-relevant topics in labour economics, with a methodological emphasis on applied econometrics. More specifically, my main research agenda focuses on studying the specificity of human capital with the goal of providing insights into the skills that workers require to carry out the tasks demanded across different occupations. Knowledge in this area is of particular importance to understand the adaptation of the workforce in light of sectoral change.

During my one-year fellowship at the IFS, I am proposing to continue working in this area. In particular, I would like to (1) work on a project idea which extends my previous work, (2) develop and start a new project together with IFS researchers, and (3) spend a limited amount of time to complete the working paper which forms the basis of my PhD dissertation (see below for a more detailed description of these research objectives). While working on the above, I am planning to interact closely with the IFS community, and participate in seminars and workshops. Moreover, I would like to put particular emphasis on the policy implications of my work, and engage with a wider non-academic audience to disseminate my research findings.

(1) My first research objective is to work on a project titled "Training, Occupations, and the Effects of Graduating into Recessions", and produce a first draft of a working paper containing the outcomes of this research. The aim of this project is to investigate the effects of graduating in a recession for apprentices in Germany. A number of studies find negative persistent effects of adverse entry conditions for college graduates, but little is known about the effects for other groups of workers. The findings from my PhD dissertation allow me to go a step further, and also investigate potential mechanisms behind any estimated effects. In particular, I am interested in evaluating to what extent negative wage effects from entry conditions can be explained by workers starting jobs in occupations unrelated to their training. Addressing this question is key to designing successful policies aimed at mitigating the effects of adverse entry conditions for young workers.

(2) My second research objective is to develop and start a new project with researchers at the IFS. Based on previous discussions with IFS researchers, this could involve analysing the incidence and effects of working in an occupation different from one's training for workers in the UK. Little is known about the prevalence of this phenomenon in the UK, but survey data suggests that the UK may have a relatively large share of affected workers. The consequences of this phenomenon are not well understood. In particular, given the structural differences between the British and German post-secondary education systems, the outcomes for workers could potentially be very different. By combining the experience of researches at the IFS of working on training-related questions in the UK with my expertise from working on the topic in the German context, the proposed research project could provide important insights into the UK training system and inform policies aimed at providing optimal training for workers in the UK.

(3) My third research objective is to finalise my working paper "Are Chemists Good Bankers? Returns to the Match between Training and Occupation" which explores the returns of combining training in a specific occupation with work in another. I study these returns using an administrative employment panel which contains the apprenticeship training for workers in Germany. In order to finalise this project and submit it for publication to an academic journal, I am planning to spend a limited amount of time to incorporate the feedback I received as part of the academic job market. This will include conducting further robustness checks on the empirical results, as well as extending and refining the policy implications that are based on my results.

Publications

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