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Skills, human capital and the plant productivity gap: UK evidence from matched plant, worker and workforce data

  • Haskel, Jonathan
  • Hawkes, Denise
  • Pereira, Sonia

Using two matched plant level skills and productivity datasets for UK manufacturing we document that (i) more productive firms hire more skilled workers: in 2000, plants at the top decile of the TFP distribution (controlling for their four-digit industry) hired workers with, on average, around 1/3rd of a year of additional schooling compared to firms in the bottom decile and (ii) in an accounting sense the skills gap between the firms in the top and bottom deciles of the TFP distribution accounts for 3 to 10% of the TFP gap depending on the specification used.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5334.

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Date of creation: Nov 2005
Date of revision:
Handle: RePEc:cpr:ceprdp:5334
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  1. Alan Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section..
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  6. Haskel, Jonathan, Sonia Pereira, 2003. "Skills and productivity in the UK using matched establishment and worker data," Royal Economic Society Annual Conference 2003 100, Royal Economic Society.
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