A Cross-Country Study of Workers' Skills and Unemployment Flows

29 Pages Posted: 24 Jan 2017 Last revised: 9 Sep 2020

See all articles by Damir Stijepic

Damir Stijepic

Johannes Gutenberg University Mainz

Date Written: September 9, 2020

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-ratio of exiting to entering unemployment of 0.62–0.70 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.

Keywords: gross worker flows, unemployment, skills, education, human capital, international comparisons, Survey of Adult Skills, PIAAC

JEL Classification: J20, J24, J60, J64, I20

Suggested Citation

Stijepic, Damir, A Cross-Country Study of Workers' Skills and Unemployment Flows (September 9, 2020). Available at SSRN: https://ssrn.com/abstract=2903283 or http://dx.doi.org/10.2139/ssrn.2903283

Damir Stijepic (Contact Author)

Johannes Gutenberg University Mainz ( email )

Jakob-Welder-Weg 9
Mainz, 55128
Germany

HOME PAGE: http://www.damir.stijepic.com

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