Coping with change: International differences in returns to skills


By: 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)
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.
Keywords: cognitive skills; returns to education; economic growth; international comparisons
JEL: J31 I20 O15



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