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Relative Supply and Demand for Skills in Switzerland

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  • Patrick A. Puhani

Abstract

Whereas Anglo-Saxon economies have recently experienced a widening wage distribution between skill groups, the Swiss wage structure has remained almost stable. This raises the question whether the Swiss labour market did not experience a decrease in the relative demand for low-skilled workers as the Anglo-Saxon economies or whether it was supply changes that kept the wage distribution between skill groups constant. I show that immigration policy played a negligible role and that the stable wage structure was made possible by adequate increases in the relative supply of skills that neutralised the increasing relative demand. From a policy perspective, my results are supportive of existing supply-side policies aiming to improve the skills of the workforce, like the expansion of higher education.

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File URL: http://www.sjes.ch/papers/2005-IV-3.pdf
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Bibliographic Info

Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 141 (2005)
Issue (Month): IV (December)
Pages: 555-584

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Handle: RePEc:ses:arsjes:2005-iv-3

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Postal: c/o SNB/BNS, Börsenstrasse 15, PO Box 2800, CH-8022 Zürich
Phone: +41 (0)44 631 32 34
Fax: +41 (0)44 631 39 01
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Web page: http://www.sjes.ch
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Related research

Keywords: wages; earnings; non-employment; rigidity; immigrants; work permits;

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References

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  1. Richard B. Freeman & Ronald Schettkat, 2000. "Skill Compression, Wage Differentials and Employment: Germany vs. the US," NBER Working Papers 7610, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Michael Siegenthaler & Tobias Stucki, 2014. "Dividing the Pie: the Determinants of Labor’s Share of Income on the Firm Level," KOF Working papers 14-352, KOF Swiss Economic Institute, ETH Zurich.
  2. Simone Wyss, 2008. "Ist die relative Schlechterstellung niedrig qualifizierter Arbeitskräfte Mythos oder Realität?," Working papers 2008/05, Faculty of Business and Economics - University of Basel.
  3. Patrick A. Puhani, 2008. "Relative Demand and Supply of Skills and Wage Rigidity in the United States, Britain, and Western Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 228(5+6), pages 573-585, December.

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