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Measuring Growth of Labor Quality and the Quality-Adjusted Unemployment Rate in Switzerland

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Author Info
Thomas Bolli
Mathias Zurlinden

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Abstract

This paper presents results on human capital accumulation for the Swiss economy. We find that the index of labor quality has grown at a rate of 0.5% per year from 1991 to 2006. The main sources are the growth in average levels of education and the passing of the baby boom cohort through the age structure of the workforce. Projections over the period 2006-2050 suggest that labor quality growth will slow down with time. We also calculate a quality-adjusted unemployment rate and find that the unemployment rate is reduced by about 0.3 pp when human capital accumulation is taken into account.

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Publisher Info
Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

Volume (Year): 55 (2009)
Issue (Month): 2 ()
Pages: 121-145
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Handle: RePEc:aeq:aeqaeq:v55_y2009_i2_q2_p121-145

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Related research
Keywords: human capital; labor quality; unemployment rate;

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Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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This page was last updated on 2009-12-26.


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