Qualifications, Employment and the Value of Human Capital, 1986-2001
AbstractThis paper summarises the changing nature of qualifications across the working age population in New Zealand over the period from 1986 to 2001, and investigates the relationships between the changing qualification distribution and employment and income. First, the results confirm that there was a general upskilling of the population, as measured by formal educational qualifications. Second, we examine patterns of qualification change and employment growth measured in job groups, and find that the upskilling of the population occurred across a wide range of job-groups. Also, although the results show the employment growth was strongest in job-groups with high initial levels of skilled workers, employment growth is only weakly related to upskilling. Third, we decompose the change in the value of human capital into contributions due to changes in the qualification mix, changes in the (economic) returns to qualifications, and the interaction between these two factors. The value of human capital increased by 20% over the period: about 75% of this increase can be attributed to increasing incomes holding constant the mix of qualifications, 15-20% to an increasing skill mix, and the residual to interaction effects.
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Bibliographic InfoPaper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 03/35.
Date of creation: Dec 2003
Date of revision:
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Qualifications; Upskilling; Human Capital; Employment Growth; Incomes; New Zealand;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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- Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
- Trinh Le & John Gibson & Les Oxley, 2006. "A Forward-Looking Measure Of The Stock Of Human Capital In New Zealand," Manchester School, University of Manchester, University of Manchester, vol. 74(5), pages 593-609, 09.
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- Geoff Mason & Matthew Osborne, 2007. "Productivity, Capital-Intensity and Labour Quality at Sector Level in New Zealand and the UK," Treasury Working Paper Series, New Zealand Treasury 07/01, New Zealand Treasury.
- Niven Winchester, 2006. "Searching for the Smoking Gun: Did Trade Hurt Unskilled Workers?," Working Papers, University of Otago, Department of Economics 0605, University of Otago, Department of Economics, revised Sep 2006.
- Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series, New Zealand Treasury 04/16, New Zealand Treasury.
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