Article 2006

Depreciation rates of general and vocational training capital - Evidence based on subjective ratings; Abschreibungsraten allgemeiner und beruflicher ausbildungsinhalte - Empirische evidenz auf basis subjektiver einschätzungen

Jahrbucher fur Nationalokonomie und Statistik
Journal · Vol. 226 · Issue 3 · pp. 260-284
Abstract

The computer revolution together with educational expansion has led to dramatic changes in the structure of the workforce and in the organisation of workplaces in the last four decades. These developments should have different impacts on the use of vocational and general skills. This study compares depreciation rates of general and specific training capital among West German workers between 1979 and 1999. In this time the personal computer entered the workplaces and the share of workers with a university degree doubled. Econometric estimates based on respondent's subjective ratings of the share of training skills applied to the current job indicate that depreciation rates of vocational skills increased significantly. In contrast, there is no evidence for positive depreciation rates among university graduates with general training capital at all. The role of measurement errors in respondent's ratings for the estimated depreciation rates is analysed with sensitivity tests. The findings lend some support to the view that there is obsolescence of vocational skills in times of rapid technological change and educational expansion.

Keywords

Author Keywords

Not provided

Index Keywords

Author Affiliations
Zentrum für Europäische Wirtschaftsforschung GmbH, Mannheim, Baden-Wurttemberg, Germany
Funding & Acknowledgements
No funding information
References 10 References
1 Acemoglu, Daron, Technical Change, Inequality, and the Labor Market, Journal of Economic Literature, 40, 1, pp. 7-72, (2002)
2 Acemoglu, Daron, The structure of wages and investment in general training, Journal of Political Economy, 107, 3, pp. 539-572, (1999)
3 Sole Eale Conference, (2005)
4 Arrazola, María, More on the estimation of the human capital depreciation rate, Applied Economics Letters, 11, 3, pp. 145-148, (2004)
5 Bertrand, Marianne, Economics and social behavior: Do people mean what they say? Implications for subjective survey data, American Economic Review, 91, 2, pp. 67-72, (2001)
6 Education and Training in A Knowledge Based Economy, (2000)
7 Asking about Prices A New Approach to Understanding Price Stickiness, (1998)
8 Oxford Economic Papers, (2001)
9 Bresnahan, Timothy F., General purpose technologies 'Engines of growth'?, Journal of Econometrics, 65, 1, pp. 83-108, (1995)
10 Card, David E., Chapter 30 The causal effect of education on earnings, Handbook of Labor Economics, 3 PART, 1, pp. 1801-1863, (1999)
Quick Actions
Full Text via DOI
Citation Metrics
4
Times Cited (Scopus)

References 10
Document Identifiers