Arbeitspapier
Changes in Human Capital: Implications for Productivity Growth in the Euro Area
The euro area has experienced a sustained decline in labour productivity growth sincethe 1980s. In the economic literature this phenomenon is commonly explained by adecline in capital deepening and lower total factor productivity (TFP) growth. However,the decline in labour productivity growth might partly also reflect a lower contributionof labour quality growth. We present evidence of changes in human capital in a numberof euro area countries based on a fixed-weight index for labour quality growth for boththe employed population and the labour force. We then evaluate the significance ofthese changes for recent developments in productivity growth. Our findings suggest thateuro area labour quality has indeed moderated towards the end of the 1990s, but theimpact on labour productivity growth is small compared to the overall decline in capitaldeepening and total factor productivity growth.
- Language
-
Englisch
- Bibliographic citation
-
Series: ifo Working Paper ; No. 53
- Classification
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Human Capital; Skills; Occupational Choice; Labor Productivity
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Subject
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Human capital
labour quality
total factor productivity
growth accounting
- Event
-
Geistige Schöpfung
- (who)
-
Schwerdt, Guido
Turunen, Jarkko
- Event
-
Veröffentlichung
- (who)
-
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
- (where)
-
Munich
- (when)
-
2007
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schwerdt, Guido
- Turunen, Jarkko
- ifo Institute - Leibniz Institute for Economic Research at the University of Munich
Time of origin
- 2007
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New technologies and productivity growth in the euro area
Labor productivity, effort and the euro area business cycle
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