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Educational Attainment, Labour Market Institutions and the Structure of Production

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  • Nickell, Stephen
  • Redding, Stephen J.
  • Swaffield, Joanna K

Abstract

A key feature of OECD economic growth since the early 1970s has been the secular decline in manufacturing’s share of GDP and the secular rise of service sectors. This Paper examines the role played by relative prices, technology, factor endowments and labour market institutions in the process of ‘de-industrialization.’ We find a statistically significant and quantitatively important effect of levels of educational attainment. Furthermore, the production structure responds differently to the educational attainment of men and women. Finally, countries with stronger levels of employment protection are shown to adjust more slowly to changes in prices, technology and factor endowments.

Suggested Citation

  • Nickell, Stephen & Redding, Stephen J. & Swaffield, Joanna K, 2001. "Educational Attainment, Labour Market Institutions and the Structure of Production," CEPR Discussion Papers 3068, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:3068
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    Cited by:

    1. Jo Blanden & Stephen Machin, 2003. "Cross-Generation Correlations of Union Status for Young People in Britain," British Journal of Industrial Relations, London School of Economics, vol. 41(3), pages 391-415, September.
    2. Bayoumi, Tamim & Haacker, Maarkus, 2002. "It's not what you make, it's how you use IT: measuring the welfare benefits of the IT revolution across countries," LSE Research Online Documents on Economics 20066, London School of Economics and Political Science, LSE Library.
    3. Redding, Stephen, 2002. "Specialization dynamics," Journal of International Economics, Elsevier, vol. 58(2), pages 299-334, December.
    4. Stephen Machin, 2004. "Factors of Convergence and Divergence in Union Membership," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 423-438, September.
    5. Martin Conyon & Richard B. Freeman, 2004. "Shared Modes of Compensation and Firm Performance U.K. Evidence," NBER Chapters,in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 109-146 National Bureau of Economic Research, Inc.
    6. Dan Devroye & Richard B. Freeman, 2001. "Does Inequality in Skills Explain Inequality in Earnings Across Advanced Countries?," NBER Working Papers 8140, National Bureau of Economic Research, Inc.
    7. Koeniger, Winfried, 2002. "Defensive Innovations," IZA Discussion Papers 454, Institute for the Study of Labor (IZA).
    8. Freeman, Richard B & Schettkat, Ronald, 2001. " Marketization of Production and the US-Europe Employment Gap," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 647-670, Special I.
    9. Richard Freeman, 2002. "Institutional Differences and Economic Performance Among OECD Countries," CEP Discussion Papers dp0557, Centre for Economic Performance, LSE.
    10. Jim Foreman & Howard Gospel, 2002. "The Provision of Training in Britain: Case Studies of Inter-Firm Coordination," CEP Discussion Papers dp0555, Centre for Economic Performance, LSE.
    11. Redding, Stephen & Venables, Tony, 2002. "Explaining cross-country export performance: international linkages and internal geography," LSE Research Online Documents on Economics 2173, London School of Economics and Political Science, LSE Library.
    12. Richard B. Freeman, 2002. "The Labour Market in the New Information Economy," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 288-305.
    13. Kaitila, Ville, 2006. "Productivity, Hours Worked, and Tax/Benefit Systems in Europe and Beyond," Discussion Papers 1015, The Research Institute of the Finnish Economy.

    More about this item

    Keywords

    de-industrialization; educational attainment; factor endowments; labour market institutions; specialization;

    JEL classification:

    • F00 - International Economics - - General - - - General
    • J00 - Labor and Demographic Economics - - General - - - General

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