On the Industry Specificity of Human Capital and Business Cycles (joint with Sergey Slobodyan and Evangelia Vourvachaki)
We define specific (general) human capital as the set of occupations whose use is spread in a limited (wide) set of industries. Using the EU Labor Force Survey database, we identify these human capital types and analyze their employment and education. This exercise yields a persistent assignment of occupations into specific and general human capital types. The share of specific human capital varies across countries and has declined over time almost everywhere.
We consider a stylized two-sector model where one of the sectors uses both types of human capital and the other specializes on general human capital. We show that a mean preserving increase in the share of specific human capital reduces (increases) the contribution of shocks in non-specialized sector and increases (reduces) the contribution of shocks in specialized sector to the variance of final output, when sectoral outputs are gross complements (substitutes).
An early draft can be found here (previously circulated as “Specific and General Types of Human Capital”)
Automation and Job Polarization: On the Decline of Middling Occupations in Europe
Using data from 10 Western European countries, I provide evidence that the fall in prices of information technologies (IT) is associated with a lower share of employment in middle wage occupations and a higher share of employment in high wage occupations. The decline in IT prices has no robust effect on the share of employment in the lowest paid occupations. Similar results hold within gender, age and education-level groups, with notable differences in these groups. For instance, the share of employment in high wage occupations among females has increased more than among males with the fall in IT prices. This is consistent with arguments that women hold a comparative advantage in communication and social skills, which are complementary to IT and in demand in high wage occupations.
Intellectual Property and Product Market Competition Regulations in a Model with two R&D Performing Sectors
I analyze the impact of intellectual property and product market competition regulations on innovation and long-run growth in an endogenous growth model with two R&D performing sectors. I show that tightening intellectual property rights and increasing competition in a sector increases its R&D investments, which mirrors the results from a similar one sector model. However, these policies adversely affect R&D investments of the other sector. The overall impact of such policies on economic growth is ambiguous because of this. Similarly, uniform changes in intellectual property rights and competition have ambiguous effects on long-run growth.
The Impact of Telecommunication Technologies on Industry Growth: Empirical Evidence (joint with Anna Kochanova)
We study whether in countries where the telecommunication technologies are used more intensively and have wider adoption the output growth is higher in industries which rely more on these technologies. Our – preliminary – results indicate a strong positive relationship between the wider adoption and more intensive use of telecommunication technologies and the output growth.
Publications and Forthcoming Papers
- Jerbashian, V. and A. Kochanova (2016). The Impact of Telecommunication Technologies on Competition in Services and Goods Markets: Empirical evidence. Forthcoming in Scandinavian Journal of Economics. Available in online print here
- Jerbashian, V. (2016). Knowledge Licensing in a Model of R&D-driven Endogenous Growth. B.E. Journal of Macroeconomics 16(2), 555–579. Available in print here
- Jerbashian, V. and A. Kochanova (2016). The Impact of Doing Business Regulations on Investments in ICT. Empirical Economics 50(3), 991-1008. Available in print here
- Jerbashian, V. (2015). Telecommunications Industry and Economic Growth: How its Market Structure Matters. Economic Modelling 51, 515–523. Available in print here
- Jerbashian, V., S. Slobodyan, and E. Vourvachaki (2015). Specific and General Human Capital in an Endogenous Growth Model. Eastern European Economics 53(3), 167-204. Available in print here
- Jerbashian, A. and V. Jerbashian (2007). Functions of ω-Bounded Type in the Half-Plane. Computational Methods and Function Theory 7(1), 205-238. Available in print here