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Measuring Growth of Labor Quality and the Quality-Adjusted Unemployment Rate in Switzerland

Measuring Growth of Labor Quality and the Quality-Adjusted Unemployment Rate in Switzerland

Year:    2009

Author:    Bolli, Thomas, Zurlinden, Mathias

Applied Economics Quarterly, Vol. 55 (2009), Iss. 2 : pp. 121–145

Abstract

This paper presents results on human capital accumulation for the Swiss economy. We find that the index of labor quality has grown at a rate of 0.5% per year from 1991 to 2006. The main sources are the growth in average levels of education and the passing of the baby boom cohort through the age structure of the workforce. Projections over the period 2006-2050 suggest that labor quality growth will slow down with time. We also calculate a quality-adjusted unemployment rate and find that the unemployment rate is reduced by about 0.3 pp when human capital accumulation is taken into account.

JEL Classification: E24, J24, J31

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/aeq.55.2.121

Applied Economics Quarterly, Vol. 55 (2009), Iss. 2 : pp. 121–145

Published online:    2009-04

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    25

Author Details

Bolli, Thomas

Zurlinden, Mathias

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