Human Capital and Growth: An Alternative Accounting

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Human Capital and Growth: An Alternative Accounting

Author Info

Peter Rangazas (IUPUI)

Abstract

This paper re-examines the importance of human capital in explaining economic growth. Previous studies are extended by including schooling investments of both time and goods within the school year, a human capital externality, and imperfect substitution between white collar and manual tasks. The model of worker productivity used to conduct the growth accounting is consistent with (1) rates of return to time and goods investment in education, (2) white collar wage premia, and (3) trendless worker productivity growth rates in the United States over the 20th century. The analysis suggests that about one third of United States growth over this period was related to human capital accumulation, accounting for an average annual growth rate of 0.6 to 0.7 percent. The model also implies that neoclassical inputs can account for 5.5 to 8.5-fold differences in worker productivity across rich and poor countries.

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Article provided by Berkeley Electronic Press in its journal Topics in Macroeconomics.

Volume (Year): 5 (2005)
Issue (Month): 1 ()
Pages: 1307-1307
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Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Paul W. Bauer & Mark E. Schweitzer & Scott Shane, 2006. "State growth empirics: the long-run determinants of state income growth," Working Paper 0606, Federal Reserve Bank of Cleveland. [Downloadable!]
Growiec, Jakub, 2007. "Human Capital, Aggregation, and Growth," MPRA Paper 7070, University Library of Munich, Germany. [Downloadable!]

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