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Measuring skill: a multi-dimensional index

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Abstract

Traditionally, skill is measured concentrating on just one dimension of the worker's ability, usually years of schooling or the blue/white collar nature of the job. This paper proposes a measure of skill that combines, in a multiplicative way, several of the observed components of skill, as well as its unobserved dimension. The proposed index is intuitivlely appealing and it is flexible, in the sense that it can accomodate as many (or as little) dimensions of human capital as feasible and suitable for the analysis to be undertaken.

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Bibliographic Info

Paper provided by Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho in its series NIMA Working Papers with number 3.

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Length: 8 pages
Date of creation: Sep 2000
Date of revision:
Publication status: forthcoming in Economics Letters
Handle: RePEc:nim:nimawp:3/2000

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Keywords: composite index; skill;

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References

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  1. Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Boston University - Institute for Economic Development, Boston University, Institute for Economic Development 78, Boston University, Institute for Economic Development.
  2. Francine D. Blau & Lawrence M. Kahn, 1994. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  3. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-92, June.
  4. Teulings, Coen N, 1995. "The Wage Distribution in a Model of the Assignment of Skills to Jobs," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 103(2), pages 280-315, April.
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Cited by:
  1. repec:ebl:ecbull:v:10:y:2007:i:1:p:1-11 is not listed on IDEAS
  2. Coen N. Teulings & P.A. Gautier, 2002. "Search and the City," Tinbergen Institute Discussion Papers 02-061/3, Tinbergen Institute.
  3. José de Hevia & María Arrazola, 2007. "An Aggregated Index Of Human Capital," Economics Bulletin, AccessEcon, vol. 10(1), pages 1-11.
  4. Fernando Alexandre & Pedro Bação & João Cerejeira & Miguel Portela, 2010. "Manufacturing employment and exchange rates in the Portuguese economy: the role of openness, technology and labour market rigidity," NIPE Working Papers, NIPE - Universidade do Minho 22/2010, NIPE - Universidade do Minho.
  5. Dumont, Michel, 2006. "The reliability-or lack thereof-of data on skills," Economics Letters, Elsevier, vol. 93(3), pages 348-353, December.

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