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The impact of human capital on labour productivity in manufacturing sectors of the European Union

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Cörvers,F. (ROA rm)

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Abstract

This paper discusses the effects of human capital on both the level and growth of labour productivity in manufacturing sectors in seven Member States of the European Union. Sectoral labour productivity is regarded as a measure of international competitiveness. Human capital is represented by the shares of intermediate and highly-skilled workers in the work force of a sector. The paper shows that the manufacturing sectors can be divided into three classes of sectors: low-skill, medium-skill and high-skill sectors. The estimation results show that both intermediate and highly-skilled labour have a positive effect on the sectoral labour productivity level, although the effect is only significant for highly-skilled labour. Moreover, there are indications of underinvestment of human capital in some manufacturing sectors. These sectors could improve their competitive position by raising the employment shares of intermediate and highly-skilled labour. Finally, intermediate-skilled labour has a significantly positive effect on the growth in sectoral labour productivity.

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Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 001.

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Date of creation: 1996
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Handle: RePEc:dgr:umaror:1996001

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Web page: http://edocs.ub.unimaas.nl/

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Keywords: labour economics ;

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References listed on IDEAS
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. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
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  2. Ram, Rati, 1980. "Role of Education in Production: A Slightly New Approach," The Quarterly Journal of Economics, MIT Press, vol. 95(2), pages 365-73, September. [Downloadable!] (restricted)
  3. Richard R. Nelson & Edmond S. Phelps, 1965. "Investment in Humans, Technological Diffusion and Economic Growth," Cowles Foundation Discussion Papers 189, Cowles Foundation, Yale University. [Downloadable!]
  4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  1. Fabio Sabatini, 2005. "Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?," Others 0508005, EconWPA. [Downloadable!]
  2. Oreggia, Eduardo, 2000. "Education Policies And Labour Markets: The Effect On Regional Growth In Mexico," ERSA conference papers ersa00p515, European Regional Science Association. [Downloadable!]
  3. Lei Delsen & Mark Schonewille, 1999. "Human Capital and Labour Productivity, Integration of Institutions and Endogenous Growth," HEW 9908001, EconWPA. [Downloadable!]
  4. Cörvers,F. & Reininga,T., 1998. "The Dutch Factor Content of Human and Physical Capital: A Test of the HOV Model," Research Memoranda 001, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
  5. Esther K. Ishengoma & Robert Kappel, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Paper Series 78, GIGA German Institute of Global and Area Studies. [Downloadable!]
  6. Jan M.P. de Kok, 2000. "The Impact of Firm-Provided Training on Production: Testing for Firm-Size Effects," Tinbergen Institute Discussion Papers 00-073/3, Tinbergen Institute. [Downloadable!]
  7. Fabio Sabatini, 2005. "Does Social Capital Improve Labour Productivity in Small and Medium Enterprises?," Others 0509011, EconWPA. [Downloadable!]
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