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Measuring Growth of Labor Quality and the Quality-Adjusted Unemployment Rate in Switzerland

  • Thomas Bolli
  • Mathias Zurlinden

This paper presents results on human capital accumulation for the Swiss economy. We find that the index of labor quality has grown at a rate of 0.5% per year from 1991 to 2006. The main sources are the growth in average levels of education and the passing of the baby boom cohort through the age structure of the workforce. Projections over the period 2006-2050 suggest that labor quality growth will slow down with time. We also calculate a quality-adjusted unemployment rate and find that the unemployment rate is reduced by about 0.3 pp when human capital accumulation is taken into account.

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Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

Volume (Year): 55 (2009)
Issue (Month): 2 ()
Pages: 121-145

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Handle: RePEc:aeq:aeqaeq:v55_y2009_i2_q2_p121-145
Contact details of provider: Web page: http://www.duncker-humblot.de

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  1. Dorothe Bonjour & Michael Gerfin, 1997. "The Unequal Distribution of Unequal Pay - An Empirical Analysis of the Gender Wage Gap in Switzerland," Diskussionsschriften dp9702, Universitaet Bern, Departement Volkswirtschaft.
  2. Venetia Bell & Pablo Burriel-Llombart & Jerry Jones, 2005. "A quality-adjusted labour input series for the United Kingdom (1975-2002)," Bank of England working papers 280, Bank of England.
  3. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
  4. Schwerdt, Guido & Turunen, Jarkko, 2006. "Growth in euro area labour quality," Working Paper Series 0575, European Central Bank.
  5. Daniel Aaronson & Daniel Sullivan, 2001. "Growth in worker quality," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 53-74.
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