Measurement of labor quality growth caused by unobservable characteristics
AbstractThe standard economy-wide indices of labor quality (or human capital) largely ignore the role of unobservable worker characteristics. In this paper, we develop a methodology for identifying the contributions of both observable and unobservable worker characteristics in the presence of the incidental parameter problem. Based on data for Switzerland over the period 1991-2006, we find that a large part of growth in labor quality is caused by shifts in the distribution of unobservable worker characteristics. The overall index differs little from the standard indices, but contributions to growth attributed to education and age are corrected downwards.
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Bibliographic InfoPaper provided by Swiss National Bank in its series Working Papers with number 2009-01.
Length: 22 pages
Date of creation: 2009
Date of revision:
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More information through EDIRC
human capital; labor quality;
Other versions of this item:
- Thomas Bolli & Mathias Zurlinden, 2012. "Measurement of labour quality growth caused by unobservable characteristics," Applied Economics, Taylor and Francis Journals, vol. 44(18), pages 2297-2308, June.
- Thomas Bolli & Mathias Zurlinden, 2008. "Measurement of labor quality growth caused by unobservable characteristics," KOF Working papers 08-203, KOF Swiss Economic Institute, ETH Zurich.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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.:
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