Sectoral shocks, human capital, and displaced workers

Research output: Contribution to journalArticlepeer-review

13 Scopus citations


This paper extends the Lucas-Prescott island economy to allow for finite lived agents and sector specific human capital. Unlike the Lucas-Prescott model in which workers who leave declining sectors find employment in expanding sectors, this models predicts that workers who leave declining sectors may simply become non-employed, whereas increased employment in expanding sectors is accomplished by increasing the rate at which new entrants enter the sector.

Original languageEnglish (US)
Pages (from-to)89-105
Number of pages17
JournalReview of Economic Dynamics
Issue number1
StatePublished - Jan 2005
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


Dive into the research topics of 'Sectoral shocks, human capital, and displaced workers'. Together they form a unique fingerprint.

Cite this