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Educational Attainment, Labour Market Institutions, and the Structure of Production

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Author Info
Stephen Nickell
Stephen Redding
Joanna Swaffield

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Abstract

A key feature of OECD economic growth since the early 1970s has been the secular decline in manufacturing's share of GDP and the secular rise of service sectors. This paper examines the role played by relative prices, technology, factor endowments, and labour market institutions in the process of "de- industrialization." We find a statistically significant and quantitatively important effect of levels of educational attainment. Furthermore, the production structure responds differently to the educational attainment of men and women. Finally, countries with stronger levels of employment protection are shown to adjust more slowly to changes in prices, technology, and factor endowments.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0545.

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Date of creation: Sep 2002
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Handle: RePEc:cep:cepdps:dp0545

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Related research
Keywords: De-industrialization; Educational Attainment; Factor Endowments; Labour Market Institutions; Specialization;

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Find related papers by JEL classification:
F0 - International Economics - - General
J0 - Labor and Demographic Economics - - General
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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Cited by:
(explanations, 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.)

  1. Koeniger, Winfried, 2002. "Defensive Innovations," IZA Discussion Papers 454, Institute for the Study of Labor (IZA). [Downloadable!]
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