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The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013

Author

Listed:
  • Fraumeni, Barbara M.

    (Central University of Finance and Economics)

  • Christian, Michael S.

    (Education Analytics, Madison)

  • Samuels, Jon D.

    (U.S. Department of Commerce)

Abstract

Over the 1948–2013 period, many factors significantly impacted on human capital, which in turn affected economic growth in the United States. This chapter analyzes these factors within a complete national income accounting system which integrates Jorgenson-Fraumeni human capital into the accounts. By including human capital, a fresh perspective on economic growth across time and within specific subperiods is revealed, notably regarding the 1995–2000 and 2007–2009 periods. During the 1995–2000 period, the reduction in human capital investment significantly reduced apparent economic growth. In the 2007–2009 period, the increase in human capital investment tempered the negative impact of the Great Recession. Over the longer time period, first the post-World War baby boom and then the substantial increase in education led to higher economic growth than otherwise expected. As the pace of increase in education slowed and the workforce aged toward the end of the period, human capital induced growth was reduced.

Suggested Citation

  • 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).
    • Handle: RePEc:iza:izadps:dp13239
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    References listed on IDEAS

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    1. Frank Gollop & Dale Jorgenson, 1983. "Sectoral Measures of Labor Cost for the United States, 1948-1978," NBER Chapters, in: The Measurement of Labor Cost, pages 185-236, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    human capital; integrated economic accounts; U.S. post-war sources of growth; education; labor force participation;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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