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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
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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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    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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