GrowthinEuroAreaLabourQuality.pptVIP

Composition of euro area work force changes over time: Share of workers with higher education tends to increase Workers with different education levels, work experience and skills move in an out of employment Raw measures of labour input such as total hours worked or employment provide biased measures of actual labour input Adjusting for labour quality is important for understanding sources of labour productivity growth and fluctuations in labour input over the business cycle Evidence suggests that positive labour quality growth contributes significantly to growth in labour productivity (Jorge