SNIC
SUPR
SNIC SUPR
The contribution of human capital dynamics and job mismatch to the slow recovery from the Great Recession
Dnr:

SNIC 2018/3-258

Type:

SNAC Medium

Principal Investigator:

Karl Walentin

Affiliation:

Sveriges riksbank, Stockholms universitet

Start Date:

2018-06-01

End Date:

2019-06-01

Primary Classification:

50201: Economics

Allocation

Abstract

In this paper we quantify the importance of human capital dynamics and job mismatch in slowing down recoveries from recessions, in particular the Great Recession. The basic question we ask is to what degree i) human capital dynamics induced by skill loss during unemployment and ii) job mismatch (low match quality) contributed to the slow recovery from the Great Recession, in particular the low post-2009 growth in GDP, labor productivity and real wages. The reason that mismatch has increased is that workers that lost their jobs in the recession tend to be less well matched compared to their pre-recession jobs.