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Human capital in growth regressions: how much difference does data quality make? An update and further results

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Author Info
Angel de la Fuente ()
Rafael Dom?ech

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Abstract

We construct estimates of educational attainment for a sample of OECD countries using previously unexploited sources. We follow a heuristic approach to obtain plausible time profiles for attainment levels by removing sharp breaks in the data that seem to reflect changes in classification criteria. We then construct indicators of the information content of our series and a number of previously available data sets and examine their performance in several growth specifications. We find a clear positive correlation between data quality and the size and significance of human capital coefficients in growth regressions. Using an extension of the classical errors in variables model, we construct a set of meta-estimates of the coefficient of years of schooling in an aggregate Cobb-Douglas production function. Our results suggest that, after correcting for measurement error bias, the value of this parameter is well above 0.50.

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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 537.02.

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Length: 46+appendix
Date of creation: 25 Aug 2002
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Handle: RePEc:aub:autbar:537.02

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Related research
Keywords: human capital; growth; measurement error;

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
I20 - Health, Education, and Welfare - - Education - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Other

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References listed on IDEAS
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  1. Desiree van Welsum & Xavier Reif, 2006. "We Can Work It Out - The Globalisation of ICT-enabled Services," NBER Working Papers 12799, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Simón Sosvilla-Rivero & Javier Alonso Meseguer, 2005. "Estimación de una función de producción MRW para la economía española, 1910-1995," Investigaciones Economicas, Fundación SEPI, vol. 29(3), pages 609-624, September. [Downloadable!]
    Other versions:
  3. Francesco Caselli, 2005. "Accounting for Cross-Country Income Differences," CEP Discussion Papers dp0667, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  4. Véronique Genre & Ramón Gómez Salvador & Ana Lamo, 2005. "European women - why do(n’t) they work?," Working Paper Series 454, European Central Bank. [Downloadable!]
  5. Yasser Abdih & Frederick L. Joutz, 2008. "The Impact of Public Capital, Human Capital, and Knowledge on Aggregate Output," IMF Working Papers 08/218, International Monetary Fund. [Downloadable!]
  6. Marta Simões & Adelaide Duarte, 2007. "Levels of education, growth and policy complementarities," GEMF Working Papers 2007-02, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
  7. Docquier, Frederic & Lowell, B. Lindsay & Marfouk, Abdeslam, 2008. "A gendered assessment of the brain drain," Policy Research Working Paper Series 4613, The World Bank. [Downloadable!]
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  8. Jérôme Vandenbussche & Philippe Aghion & Costas Meghir, 2004. "Growth, distance to frontier and composition of human capital," IFS Working Papers W04/31, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  9. Simón Sosvilla-Rivero & Javier Alonso Meseguer, . "El efecto del capital humano sobre el crecimiento: ¿ Importa el periodo muestral?," Working Papers 2003-22, FEDEA. [Downloadable!]
  10. Mary J. Keeney, 2007. "Measuring Irish Capital," The Economic and Social Review, Economic and Social Studies, vol. 38(1), pages 25-62. [Downloadable!]
  11. Christophe Kamps, 2005. "New Estimates of Government Net Capital Stocks for 22 OECD Countries 1960-2001," Public Economics 0506015, EconWPA. [Downloadable!]
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  12. Rita Asplund, 2004. "A Macroeconomic Perspective on Education and Inequality," Discussion Papers 906, The Research Institute of the Finnish Economy. [Downloadable!]
  13. Frédéric Docquier & Olivier Lohest & Abdeslam Marfouk, 2005. "Brain Drain in Developing Regions (1990-2000)," IZA Discussion Papers 1668, Institute for the Study of Labor (IZA). [Downloadable!]
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  15. Frederic, DOCQUIER & Olivier, LOHEST & Abdeslam, MARFOUK, 2007. "Brain drain in developing countries," Discussion Papers (ECON - Département des Sciences Economiques) 2007004, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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  16. Marta Simões & Adelaide Duarte, 2007. "Education and growth: an industry-level analysis of the Portuguese manufacturing," GEMF Working Papers 2007-03, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
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