Fr-SYM-529-3 - Complexity Solving Skills And Regional Economic Growth

Track:
Measurement and psychometrics
What:
Symposium
When:
Friday May 19   04:15 PM to 05:15 PM (1 hour)
Where:
Intel Theatre
Discussion:
0
 
Performance and productivity
Productivity
Fr-SYM-529-3
Complexity Solving Skills and Regional Economic Growth
P. Ederer 1,*, A. Patt
1Zeppelin University, Friedrichshafen, Germany
 
Main Abstract Content: Purpose. We investigate the disparity of regional economic development in Europe using a novel measure of human capital (HC), which is based on heterogeneous on-the-job learning and more specifically lifelong acquisition of skills related to dealing with complexity at work. We can attribute the contribution of HC to economic growth using regional occupational distributions and surveys of task content of jobs.
Design/Methodology. Economic growth per capita calculations for 201 NUTS 2 regions of Europe. Complexity solving skills embedded in the work force are measured with a task-based indicator, derived from Labor Force Survey and German BIBB data.
Results. We find that a 5% increase in the growth of regional complexity results in a 4% increase in the rate of per capita GDP growth. Task complexity remains a strong predictor of economic development also conditional on other commonly used determinants, such as the rate of saving, population growth and education.
Limitations. On the regional level of European countries (NUTS 2), the data is available only from the year 2002. That the data shows high significance despite this short period indicates its validity.
Research/practical Implications. Provides guidance for regional economic strategies on how to promote economic growth, and what growth rates to expect under steady state assumptions.
Originality/Value. This study shows for the first time how the growth of task complexity in the occupational structure of a region is related to the economic growth of a region. This provides a finer granular picture on the nature of HC critical to economic growth. 
 
 
 
 
 
 
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