Accumulated Human Capital, Unemployment, And Subsequent Wages

Abstract

The objective of this paper is to empirically examine the determinants of post-unemployment wages and to identify the underlying economic forces triggering the observed wage setting mechanisms. Specifically, the paper focuses on the impact of accumulated human capital on post-unemployment wages and investigates the following issues: (1) Is formal educational attainment a significant determinant of post-unemployment wages? (2) What type of previous labor market experience (general vs. job-specific) is more valued by a new employer? (3) Are workers who find a new job in the same sector, industry or occupation more likely to retain their specific human capital and, thus, earn higher post-unemployment wages? The 1994-2001 Polish Labor Force Surveys are used as the data source for this study.