The standard economy-wide indices of labour quality (or human capital) largely ignore the role of unobservable worker characteristics. In this article, we develop a methodology for identifying the contributions of both observable and unobservable worker characteristics in the presence of the...

Technical Progress in matching models of the labour market has not received serious attention. This article examines the impact on the results of these models when an attempt is made to allow time to enter in a realistic fashion, and finds that recently published results on the possibility of...