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Coping with change: International differences in returns to skills

Author

Listed:
  • Eric A. Hanushek

    (Hoover Institution, Standford University, USA)

  • Guido Schwerdt

    (Department of Economics, University of Konstanz, Germany)

  • Simon Wiederhold

    (ifo Institute, Germany)

  • Ludger Woessmann

    (ifo Institute, Germany)

Abstract

Expanded international data from the PIAAC survey of adult skills allow us to analyze potential sources of the cross-country variation of comparably estimated labor-market returns to skills in a more diverse set of 32 countries. Returns to skills are systematically larger in countries that have grown faster in the recent past, consistent with models where skills are particularly important for adaptation to dynamic economic change.

Suggested Citation

  • 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.
  • Handle: RePEc:knz:dpteco:1610
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    References listed on IDEAS

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    More about this item

    Keywords

    cognitive skills; returns to education; economic growth; international comparisons;
    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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