Measurement of labour quality growth caused by unobservable characteristics
AbstractThe standard economy-wide indices of labour quality (or human capital) largely ignore the role of unobservable worker characteristics. In this article, we develop a methodology for identifying the contributions of both observable and unobservable worker characteristics in the presence of the incidental parameter problem. Based on data for Switzerland over the period 1991 to 2006, we find that a large part of growth in labour quality is caused by shifts in the distribution of unobservable worker characteristics. The overall index differs little from the standard indices, but contributions to growth attributed to education and age are corrected downwards.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 44 (2012)
Issue (Month): 18 (June)
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
Other versions of this item:
- Thomas Bolli & Mathias Zurlinden, 2008. "Measurement of labor quality growth caused by unobservable characteristics," KOF Working papers 08-203, KOF Swiss Economic Institute, ETH Zurich.
- Thomas Bolli & Mathias Zurlinden, 2009. "Measurement of labor quality growth caused by unobservable characteristics," Working Papers 2009-01, Swiss National Bank.
- 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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John M. Abowd & Francis Kramarz & David N. Margolis, 1999.
"High Wage Workers and High Wage Firms,"
Econometric Society, vol. 67(2), pages 251-334, March.
- John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO.
- John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc.
- Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Universite de Montreal, Departement de sciences economiques.
- Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
- Daniel Aaronson & Daniel Sullivan, 2001.
"Growth in worker quality,"
Federal Reserve Bank of Chicago, issue Q IV, pages 53-74.
- Schwerdt, Guido & Turunen, Jarkko, 2006.
"Growth in Euro Area Labour Quality,"
CEPR Discussion Papers
5509, C.E.P.R. Discussion Papers.
- Lancaster, Tony, 2000. "The incidental parameter problem since 1948," Journal of Econometrics, Elsevier, vol. 95(2), pages 391-413, April.
- Thomas Bolli & Mathias Zurlinden, 2009.
"Measuring Growth of Labor Quality and the Quality-Adjusted Unemployment Rate in Switzerland,"
Applied Economics Quarterly (formerly: Konjunkturpolitik),
Duncker & Humblot, Berlin, vol. 55(2), pages 121-145.
- Thomas Bolli & Mathias Zurlinden, 2008. "Measuring growth of labour quality and the quality-adjusted unemployment rate in Switzerland," Working Papers 2008-13, Swiss National Bank.
- John M. Abowd & Paul A. Lengermann & Kevin L. McKinney, 2002. "The Measurement of Human Capital in the U.S. Economy," Longitudinal Employer-Household Dynamics Technical Papers 2002-09, Center for Economic Studies, U.S. Census Bureau, revised Mar 2003.
- Venetia Bell & Pablo Burriel-Llombart & Jerry Jones, 2005. "A quality-adjusted labour input series for the United Kingdom (1975-2002)," Bank of England working papers 280, Bank of England.
- Laura-Maria DINDIRE, 2012. "Assessment Model Of The Nations? Human Capital - The Case Of The Eu Countries," Management Strategies Journal, Constantin Brancoveanu University, vol. 18(4), pages 21-27.
- Nilsen, Øivind Anti & Raknerud, Arvid & Rybalka, Marina & Skjerpen, Terje, 2010.
"The Importance of Skill Measurement for Growth Accounting,"
IZA Discussion Papers
4997, Institute for the Study of Labor (IZA).
- Øivind A. Nilsen & Arvid Raknerud & Marina Rybalka & Terje Skjerpen, 2011. "The Importance Of Skill Measurement For Growth Accounting," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(2), pages 293-305, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.