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Measuring skill: a multi-dimensional index

  • Portela, Miguel

Traditionally, skill is measured concentrating on just one dimension of the worker's ability, usually years of schooling or the blue/white collar nature of the job. This paper proposes a measure of skill that combines, in a multiplicative way, several of the observed components of skill, as well as its unobserved dimension. The proposed index is intuitivlely appealing and it is flexible, in the sense that it can accomodate as many (or as little) dimensions of human capital as feasible and suitable for the analysis to be undertaken.

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File URL: http://www.sciencedirect.com/science/article/B6V84-430G2HM-4/2/ddf6096912341cbb252145270a7be384
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 72 (2001)
Issue (Month): 1 (July)
Pages: 27-32

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Handle: RePEc:eee:ecolet:v:72:y:2001:i:1:p:27-32
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Eli Berman & John Bound & Stephen Machin, 1998. "Implications Of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1245-1279, November.
  2. Francine D. Blau & Lawrence M. Kahn, 1994. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  3. Teulings, Coen N, 1995. "The Wage Distribution in a Model of the Assignment of Skills to Jobs," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 280-315, April.
  4. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-92, June.
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