Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295769 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16746
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Although recessions negatively affect labor market outcomes, we find that individuals with greater cognitive skills have been less affected by recessions since 2000 compared to those in the 1980s and 1990s. This result occurs despite a decrease in the returns to cognitive skills over the last few decades, on average. We argue that changes in the provision of employer-paid training can help explain the relative return to cognitive skills during recent recessions due to lower training costs and enhanced labor productivity. Consistent with this, we find that firms provide more training to workers with higher cognitive skills during post-2000 recessions.
Subjects: 
cognitive skills
social skills
training
recessions
JEL: 
J01
J23
J24
J31
J60
J64
Document Type: 
Working Paper

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