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The Money Value of a Man

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  • Mark Huggett
  • Greg Kaplan

Abstract

This paper posits a notion of the value of an individual's human capital and the associated return on human capital. These concepts are examined using U.S. data on male earnings and financial asset returns. We find that (1) the value of human capital is far below the value implied by discounting earnings at the risk-free rate, (2) mean human capital returns exceed stock returns early in life and decline with age, (3) the stock component of the value of human capital is smaller than the bond component at all ages and (4) human capital returns and stock returns have a small positive correlation over the working lifetime.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18066.

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Date of creation: May 2012
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Handle: RePEc:nbr:nberwo:18066

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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The value of human capital
    by Economic Logician in Economic Logic on 2012-06-01 14:10:00
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Cited by:
  1. Benzoni, Luca & Chyruk, Olena, 2013. "Human Capital and Long-Run Labor Income Risk," Working Paper Series, Federal Reserve Bank of Chicago WP-2013-16, Federal Reserve Bank of Chicago.

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