The gap between labour force skills explains 65% of the gaps between per capita income trends in euro-zone countries

We compare euro-zone countries, which eliminates differences caused by monetary policies, exchange rate fluctuations and geographical location. We look at what proportion of the gaps between per capita income trends in these countries is explained by the population's skills. This proportion is 65% if we strip out Eastern European countries belonging to the euro zone. This illustrates the importance of restoring skills if the objective of economic policy is to restore income.