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Cost‐ and Income‐based Measures of Human Capital

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  • Trinh Le
  • John Gibson
  • Les Oxley

Abstract

Human capital is increasingly believed to play an important role in the growth process, however, adequately measuring its stock remains controversial. In this paper three general approaches to measurement are identified; cost‐based, income‐based and educational stock‐based. This survey focuses on the first two approaches and provides a critical review of the theories and their applications to data from a range of countries. Particular emphasis is placed upon the work of Jorgenson and Fraumeni (1989, 1992) and some new results for New Zealand based upon their approach are also presented.

Suggested Citation

  • Trinh Le & John Gibson & Les Oxley, 2003. "Cost‐ and Income‐based Measures of Human Capital," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 271-307, July.
    • Handle: RePEc:bla:jecsur:v:17:y:2003:i:3:p:271-307
    DOI: 10.1111/1467-6419.00196
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