Interpreting Europe and US Labor Market Differences: the Specificity of Human Capital Investments

Etienne Wasmer 2008

This paper suggests that in the US context, workers tend to invest in general human capital since they face little employment protection and low unemployment benefits, while the European model favors specific human capital investments. The study shows that no model dominates the other, and each has its own coherence, although the European one is more fragile when macroeconomic conditions change.

Download Working Paper 2008 no.9

This paper suggests that in the US context, workers tend to invest in general human capital since they face little employment protection and low unemployment benefits, while the European model favors specific human capital investments. The study shows that no model dominates the other, and each has its own coherence, although the European one is more fragile when macroeconomic conditions change.

Download Working Paper 2008 no.9