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Coping with Change: International Differences in the Returns to Skills

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  • Eric A. Hanushek
  • Guido Schwerdt
  • Simon Wiederhold
  • Ludger Woessmann

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 the Returns to Skills," NBER Working Papers 22657, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22657
    Note: CH DEV ED EFG LS PE
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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