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New measures of workforce skills in the EU

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  • Kang, Lili
  • O'Mahony, Mary
  • Peng, Fei

Abstract

This paper presents new data series designed to yield a more complete picture of the growth in average skill levels embedded in the EU workforce, comparing with competitor countries such as the US and China. Harmonised data from EU surveys are employed to extend coverage in existing databases to more countries, to cover the period of the financial crisis, and to skills acquired through informal workforce training. The results indicate growth in labour quality in the EU15 marginally below the US, convergence of the group of new member states to the EU15 but no sign of convergence of China to more developed regions. There is evidence of a pronounced rise in labour quality in most countries after 2007, consistent with theories of labour hoarding, but with some notable exceptions. Expanding the conventional measures of labour quality to include informal training leads to small but significant increases in the growth of human capital in some EU15 member states.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43980.

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Date of creation: Apr 2012
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Handle: RePEc:pra:mprapa:43980

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Keywords: Workforce skills; training; financial crisis;

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References

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  1. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, 09.
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  6. Kang, Lili & Peng, Fei, 2011. "A selection analysis on education returns in China," MPRA Paper 38704, University Library of Munich, Germany.
  7. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
  8. Mikkel Barslund, 2012. "Recent Developments in Selected Education Indicators and their Relation to Europe 2020 Targets," National Institute Economic Review, National Institute of Economic and Social Research, vol. 220(1), pages R6-R16, April.
  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  10. Jalava, Jukka & Aulin-Ahmavaara, Pirkko & Alanen, Aku, 2007. "Intangible Capital in the Finnish Business Sector 1975-2005," Discussion Papers 1103, The Research Institute of the Finnish Economy.
  11. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages F374-F403, 06.
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Cited by:
  1. Kang, Lili & Peng, Fei, 2013. "Economic Reform and Productivity Convergence in China," MPRA Paper 50810, University Library of Munich, Germany.

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