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Coping with Change: International Differences in the Returns to Skills

Author

Listed:
  • Hanushek, Eric A.

    (Hoover Institution, Stanford University, CESifo, and NBER)

  • Schwerdt, Guido

    (University of Konstanz, CESifo, and IZA)

  • Wiederhold, Simon

    (Catholic University Eichstaett-Ingolstadt, ifo Institute, and CESifo)

  • Woessmann, Ludger

    (University of Munich, ifo Institute, CESifo, and IZA)

Abstract

International data from the PIAAC survey allow estimation of comparable labor-market returns to skills for 32 countries. Returns to skills are larger in faster growing economies, consistent with the hypothesis that skills are particularly important for adaptation to economic change.

Suggested Citation

  • Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2017. "Coping with Change: International Differences in the Returns to Skills," CAGE Online Working Paper Series 313, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:313
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Coping with change: International differences in returns to skills
      by maximorossi in NEP-LTV blog on 2016-10-25 18:42:28

    Citations

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    Cited by:

    1. Stijepic, Damir, 2021. "A cross-country study of skills and unemployment flows," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55(55), pages 1-.9.
    2. Yao, Yao & Ivanovski, Kris & Inekwe, John & Smyth, Russell, 2019. "Human capital and energy consumption: Evidence from OECD countries," Energy Economics, Elsevier, vol. 84(C).
    3. Monika Köppl-turyna & Michael Christl, 2018. "Returns to Skills or Returns to Tasks? A Comment on Hanushek et al. (2015)," Economics Bulletin, AccessEcon, vol. 38(2), pages 783-790.
    4. Eric Hanushek, 2019. "Addressing Cross-National Generalizability in Educational Impact Evaluation," Working Papers 2019-007, Human Capital and Economic Opportunity Working Group.
    5. Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2017. "Coping with change: International differences in the returns to skills," Economics Letters, Elsevier, vol. 153(C), pages 15-19.
    6. Hanushek, Eric A., 2021. "Addressing cross-national generalizability in educational impact evaluation," International Journal of Educational Development, Elsevier, vol. 80(C).
    7. Daniel D. Schnitzlein, 2019. "The relationship between trust, cognitive skills, and democracy - Evidence from 30 countries around the world," Economics Bulletin, AccessEcon, vol. 39(1), pages 200-206.
    8. Pierre Lefebvre & Philip Merrigan, 2020. "Les inégalités provinciales aux tests internationaux-nationaux de littéracie : Québec, Ontario et autres provinces canadiennes 1993-2018 [Provincial achievement gaps from literacy surveys conducted," Working Papers 20-02, Research Group on Human Capital, University of Quebec in Montreal's School of Management, revised Oct 2020.
    9. Hanushek, Eric A. & Peterson, Paul E. & Talpey, Laura M. & Woessmann, Ludger, 2020. "Long-Run Trends in the U.S. SES-Achievement Gap," IZA Discussion Papers 12971, Institute of Labor Economics (IZA).
    10. Campbell, Susanna G. & Üngör, Murat, 2020. "Revisiting human capital and aggregate income differences," Economic Modelling, Elsevier, vol. 91(C), pages 43-64.
    11. repec:cep:cverdp:012 is not listed on IDEAS
    12. Sylvie Démurger & Eric A. Hanushek & Lei Zhang, 2019. "Employer Learning and the Dynamics of Returns to Universities: Evidence from Chinese Elite Education during University Expansion," NBER Working Papers 25955, National Bureau of Economic Research, Inc.
    13. Eric Hanushek, 2017. "For long-term economic development, only skills matter," IZA World of Labor, Institute of Labor Economics (IZA), pages 343-343, March.
    14. Eric A. Hanushek & Paul E. Peterson & Laura M. Talpey & Ludger Woessmann, 2019. "The Unwavering SES Achievement Gap: Trends in U.S. Student Performance," NBER Working Papers 25648, National Bureau of Economic Research, Inc.
    15. Bellés Obrero, Cristina & Duchini, Emma, 2020. "Who Benefits from General Knowledge?," IZA Discussion Papers 12995, Institute of Labor Economics (IZA).
    16. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    17. Pierre Lefebvre & Philip Merrigan, 2020. "Les inégalités provinciales aux tests internationaux-nationaux de littéracie : Québec, Ontario et autres provinces canadiennes 1993-2018 (Version révisée et augmentée octobre 2020)," CIRANO Working Papers 2020s-29, CIRANO.
    18. Pankaj C. Patel & Yoav Ganzach, 2019. "Returns to balance in cognitive skills for the self-employed: evidence from 18 countries," Small Business Economics, Springer, vol. 52(1), pages 89-109, January.
    19. Franziska Hampf & Marc Piopiunik & Simon Wiederhold, 2020. "The Effects of Graduating from High School in a Recession: College Investments, Skill Formation, and Labor-Market Outcomes," CESifo Working Paper Series 8252, CESifo.
    20. Damir STIJEPIC, 2020. "Employment effects of skills around the world: Evidence from the PIAAC," International Labour Review, International Labour Organization, vol. 159(3), pages 307-338, September.
    21. Ludger Wößmann, 2020. "Folgekosten ausbleibenden Lernens: Was wir über die Corona-bedingten Schulschließungen aus der Forschung lernen können," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(06), pages 38-44, June.
    22. Eric A. Hanushek, 2017. "Education and the Growth-Equity Trade-Off," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 293-312, National Bureau of Economic Research, Inc.
    23. Maria-Chiara Morandini & Anna Thum-Thysen & Anneleen Vandeplas, 2020. "Facing the Digital Transformation: Are Digital Skills Enough?," European Economy - Economic Briefs 054, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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    More about this item

    Keywords

    returns to skills; economic growth; cognitive skills; international comparisons; disequilibria; knowledge capital JEL Classification: I2; J3; O15;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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