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Net Investment and Stocks of Human Capital in the United States, 1975-2013

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  • Michael S. Christian

Abstract

This article continues the research initiated in Christian (2010, 2014) on measurement of human capital stocks and investment in the United States. It develops estimates of a series of human capital stock and net investment from 1975 to 2013, using the lifetime earnings approach of Jorgenson and Fraumeni (1989, 1992). The series decomposes net investment into investment from births, investment in education net of aging of persons enrolled in school, depreciation from aging of persons not enrolled in school, depreciation from deaths, and a residual term that includes net migration and measurement error. The study also discusses the cost-based approach of measurement in human capital of Kendrick (1976) and compares investment in education between the cost and income approaches. The stock of human capital rose at an annual rate of 1.0 per cent between 1977 and 2013, with population growth as the primary driver of human capital growth. Per capita human capital remained much the same over this period, with the effect of greater levels of education being offset by the effect of an aging population.

Suggested Citation

  • Michael S. Christian, 2017. "Net Investment and Stocks of Human Capital in the United States, 1975-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 128-149, Fall.
    • Handle: RePEc:sls:ipmsls:v:33:y:2017:7
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    Cited by:

    1. Nicolas Canry, 2020. "Why and How Should Human Capital be Measured in National Accounts?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 61-79.
    2. Katharine G. Abraham & Justine Mallatt, 2022. "Measuring Human Capital," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 103-130, Summer.
    3. Fraumeni, Barbara M. & Christian, Michael S. & Samuels, Jon D., 2020. "The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013," IZA Discussion Papers 13239, Institute of Labor Economics (IZA).
    4. Barbara M. Fraumeni & Michael S. Christian, 2019. "Accumulation of Human and Market Capital in the United States, 1975-2012: An Analysis by Gender," NBER Working Papers 25864, National Bureau of Economic Research, Inc.
    5. Fraumeni, Barbara M. & Christian, Michael S., 2019. "Accumulation of Human and Market Capital in the United States, 1975-2012: An Analysis by Gender," IZA Discussion Papers 12364, Institute of Labor Economics (IZA).
    6. Barbara M. Fraumeni & Michael S. Christian & Jon D. Samuels, 2020. "The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013," NBER Working Papers 27170, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Human Capital; Investment; Measurement; Cost-based Approach.;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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