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A cross-country study of skills and unemployment flows
[journal article]
Abstract Using an international survey that directly assesses the cognitive skills of the adult population, I study the relation between skills and unemployment flows across 37 countries. Depending on the specifically assessed domain, I document that skills have an unconditional correlation with the log-risk... view more
Using an international survey that directly assesses the cognitive skills of the adult population, I study the relation between skills and unemployment flows across 37 countries. Depending on the specifically assessed domain, I document that skills have an unconditional correlation with the log-risk-ratio of exiting to entering unemployment of 0.65–0.68 across the advanced and skill-abundant countries in the sample. The relation is remarkably robust and it is unlikely to be due to reverse causality. I do not find evidence that this positive relation extends to the seven relatively less advanced and less skill-abundant countries in the sample: Peru, Ecuador, Indonesia, Mexico, Chile, Turkey and Kazakhstan.... view less
Keywords
unemployment; cognitive ability; cognitive factors; education; level of education; human capital; international comparison
Classification
Labor Market Research
Education and Pedagogics
Free Keywords
Gross worker flows; Skills; Survey of Adult Skills, PIAAC
Document language
English
Publication Year
2021
Page/Pages
p. 1-30
Journal
Journal for Labour Market Research, 55 (2021)
DOI
https://doi.org/10.1186/s12651-021-00289-x
ISSN
1867-8343
Status
Published Version; peer reviewed