Coping with Change: International Differences in the Returns to Skills
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.
Wiederhold and Woessmann gratefully acknowledge financial support from the Leibniz Association through the project “Acquisition and Utilization of Adult Skills.” The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Hanushek, Eric A. & Schwerdt, Guido & Wiederhold, Simon & Woessmann, Ludger, 2017. "Coping with change: International differences in the returns to skills," Economics Letters, Elsevier, vol. 153(C), pages 15-19. citation courtesy of