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The relative efficiency of skilled labor across countries: Measurement and interpretation

By: Rossi, Federico.
Material type: materialTypeLabelBookPublisher: American Economic Review Description: 112(1), Jan, 2022: p.235-266. In: American Economic ReviewSummary: I study how the relative efficiency of high- and low-skill labor varies across countries. Using microdata for countries at different stages of development, I document that differences in relative quantities and wages are consistent with high-skill workers being relatively more productive in rich countries. I exploit variation in the skill premia of foreign-educated migrants to discriminate between two possible drivers of this pattern: cross-country differences in the skill bias of technology and in the relative human capital of skilled labor. I find that the former is quantitatively more important, and discuss the implications of this result for development accounting. – Reproduced
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Articles Articles Indian Institute of Public Administration
112(1), Jan, 2022: p.235-266 Available AR126922

I study how the relative efficiency of high- and low-skill labor varies across countries. Using microdata for countries at different stages of development, I document that differences in relative quantities and wages are consistent with high-skill workers being relatively more productive in rich countries. I exploit variation in the skill premia of foreign-educated migrants to discriminate between two possible drivers of this pattern: cross-country differences in the skill bias of technology and in the relative human capital of skilled labor. I find that the former is quantitatively more important, and discuss the implications of this result for development accounting. – Reproduced

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