Quality of Work Experience and Economic Development—Estimates using Canadian Immigrant Data
AbstractThere is increasing evidence in the economic development literature that the quality of schooling considerably varies across countries that are at different stages in their economic development. However, an issue that has been overlooked is the role of the quality of work experience in explaining differences in economic development. This paper uses Canadian census data on immigrant earnings to show that per capita GDP in the country of origin can be used as a quality indicator for both education and work experience. Coefficients estimated from immigrant earnings regressions are then used to estimate the effects of difference in human capital quality on development gaps between rich and poor countries. The analysis shows that while differences in the quality of schooling account for substantial differences in living standards across countries, differences in the quality of work experience can account for even more. Policywise, our results suggest that the immediate effects of improving the quality and the quantity of schooling in less-developed countries might be rather limited if labour-market institutions and ways of doing things are not changed at the same time to improve the quality of work experience.
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Bibliographic InfoPaper provided by University of Ottawa, Department of Economics in its series Working Papers with number 1109E.
Length: 37 pages
Date of creation: 2011
Date of revision:
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Web page: http://www.socialsciences.uottawa.ca/eco/eng/index.asp
More information through EDIRC
Quality of human capital; work experience; immigrant earnings; quality of schooling; economic development.;
Find related papers by JEL classification:
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-HRM-2012-01-25 (Human Capital & Human Resource Management)
- NEP-LAB-2012-01-25 (Labour Economics)
- NEP-MIG-2012-01-25 (Economics of Human Migration)
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