Educational Attainment, Labor Market Institutions and the Structure of Production

52 Pages Posted: 6 Dec 2001

See all articles by Stephen John Nickell

Stephen John Nickell

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); Centre for Economic Policy Research (CEPR)

Joanna K. Swaffield

University of York - Department of Economics and Related Studies

Stephen J. Redding

Princeton University

Date Written: November 2001

Abstract

A key feature of OECD economic growth since the early 1970s has been the secular decline in manufacturing's share of GDP and the secular rise of service sectors. This Paper examines the role played by relative prices, technology, factor endowments and labor market institutions in the process of "de-industrialization." We find a statistically significant and quantitatively important effect of levels of educational attainment. Furthermore, the production structure responds differently to the educational attainment of men and women. Finally, countries with stronger levels of employment protection are shown to adjust more slowly to changes in prices, technology and factor endowments.

Keywords: De-industrialization, educational attainment, factor endowments, labor market institutions, specialization

JEL Classification: F00, J00, O00

Suggested Citation

Nickell, Stephen John and Swaffield, Joanna K. and Redding, Stephen J., Educational Attainment, Labor Market Institutions and the Structure of Production (November 2001). Available at SSRN: https://ssrn.com/abstract=292676

Stephen John Nickell (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
England
+44 20 7955 7497 (Phone)
+44 20 7831 1840 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Joanna K. Swaffield

University of York - Department of Economics and Related Studies ( email )

Heslington
York 010 5DD
United Kingdom
+44 1904 433 679 (Phone)
+44 1904 433 759 (Fax)

Stephen J. Redding

Princeton University ( email )

Princeton, NJ 08544-1021
United States

HOME PAGE: http://www.princeton.edu/~reddings/

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