This paper offers new evidence on the sources of cross-country income differences. It exploits the idea that observing immigrant workers from different countries in the same labor market provides an opportunity to estimate their human capital endowments. These estimates suggest that human and physical capital account for only a fraction of cross-country income differences. For countries below 40 percent of U.S. output per worker, less than half of the output gap relative to the U.S. is attributed to human and physical capital.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
11409.
Length: Date of creation: 19 Feb 2004 Date of revision: Publication status: Published in American Economic Review, 2002, Vol. 92, No. 1, pp. 198-219. Handle: RePEc:isu:genres:11409
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Find related papers by JEL classification: O1 - Economic Development, Technological Change, and Growth - - Economic Development
References listed on IDEAS 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.:
Acemoglu, Daron & Zilibotti, Fabrizio, 1998.
"Productivity Differences,"
Seminar Papers
660, Stockholm University, Institute for International Economic Studies.
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