Measuring Educational Heterogeneity And Labor Quality: A Note

Mogens Fosgerau, Svend E. Hougaard Jensen and Anders Sørensen

Review of Income and Wealth, 2002, vol. 48, issue 2, 261-269

Abstract: This paper investigates the magnitude of the mismeasurement that occurs when only a few education categories are used in the construction of a constant quality index for labor input. By employing a very comprehensive data set it is found that the error resulting from the omission of information on education is relatively small. The empirical results are thus supportive of the current state of practice of constructing indices of constant quality labor input.

Date: 2002
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