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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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    File URL: https://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/313-2017_woessmann.pdf
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    References listed on IDEAS

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    1. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
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    3. Hanushek, Eric A. & Woessmann, Ludger, 2011. "The Economics of International Differences in Educational Achievement," Handbook of the Economics of Education, Elsevier.
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    11. Hanushek, Eric A. & Woessmann, Ludger, 2015. "The Knowledge Capital of Nations: Education and the Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029170, March.
    12. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
    13. 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.
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    17. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 3, number 3, June.
    18. Eric A. Hanushek & Guido Schwerdt & Simon Wiederhold & Ludger Woessmann, 2016. "Coping with change: International differences in returns to skills," Working Paper Series of the Department of Economics, University of Konstanz 2016-10, Department of Economics, University of Konstanz.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2018. "Skills, Signals, and Employability: An Experimental Investigation," CAGE Online Working Paper Series 357, Competitive Advantage in the Global Economy (CAGE).
    2. repec:nbr:nberch:13938 is not listed on IDEAS
    3. repec:kap:sbusec:v:52:y:2019:i:1:d:10.1007_s11187-018-0018-4 is not listed on IDEAS
    4. 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.
    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. & Peterson, Paul E. & Talpey, Laura M. & Woessmann, Ludger, 2019. "The Unwavering SES Achievement Gap: Trends in U.S. Student Performance," Working Paper Series rwp19-012, Harvard University, John F. Kennedy School of Government.
    7. repec:cep:cverdp:012 is not listed on IDEAS
    8. repec:ebl:ecbull:eb-18-00763 is not listed on IDEAS
    9. Eric Hanushek, 2017. "For long-term economic development, only skills matter," IZA World of Labor, Institute of Labor Economics (IZA), pages 343-343, March.
    10. Eric Hanushek, 2019. "Addressing Cross-National Generalizability in Educational Impact Evaluation," Working Papers 2019-007, Human Capital and Economic Opportunity Working Group.
    11. Schnitzlein, Daniel D, 2019. "The relationship between trust, cognitive skills, and democracy - evidence from 30 countries around the world," Hannover Economic Papers (HEP) dp-650, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

    More about this item

    Keywords

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

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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