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Human Capital Prices, Productivity, and Growth

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  • Audra J. Bowlus
  • Chris Robinson

Abstract

Separate identification of the price and quantity of human capital has important implications for understanding key issues in economics. Price and quantity series are derived for four education levels. The price series are highly correlated and they exhibit a strong secular trend. Three resulting implications are explored: the rising college premium is found to be driven more by relative quantity than relative price changes, life-cycle wage profiles are readily interpretable as reflecting optimal human capital investment paths using the estimated price series, and adjusting the labor input for quality increases dramatically reduces the contribution of MFP to growth. (JEL D91, I20, J24, J31, O47)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 102 (2012)
Issue (Month): 7 (December)
Pages: 3483-3515

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Handle: RePEc:aea:aecrev:v:102:y:2012:i:7:p:3483-3515

Note: DOI: 10.1257/aer.102.7.3483
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References

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  1. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
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  6. Audra J. Bowlus & Chris Robinson, 2010. "Human Capital Prices, Productivity and Growth," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20104, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  7. Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S11-44, August.
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Citations

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Cited by:
  1. Elitas, Zeynep & Ercan, Hakan & Tumen, Semih, 2014. "Reassessing the Trends in the Relative Supply of College-Equivalent Workers in the U.S.: A Selection-Correction Approach," MPRA Paper 55396, University Library of Munich, Germany.
  2. Audra J. Bowlus & Chris Robinson, 2010. "Human Capital Prices, Productivity and Growth," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20104, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  3. Nancy L. Stokey, 2012. "Catching Up and Falling Behind," NBER Working Papers 18654, National Bureau of Economic Research, Inc.
  4. Elisa Keller, 2013. "Occupational Complexity, Experience, and the Gender Wage Gap," 2013 Meeting Papers 348, Society for Economic Dynamics.
  5. Lutz Hendricks & Todd Schoellman, 2013. "Student Abilities During the Expansion of US Education," CESifo Working Paper Series 4537, CESifo Group Munich.
  6. John Bailey Jones & Fang Yang, 2012. "Skill-Biased Technical Change and the Cost of Higher Education," Discussion Papers 12-08, University at Albany, SUNY, Department of Economics.

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