IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/33791.html
   My bibliography  Save this paper

A national accounts satellite for human capital and education

Author

Listed:
  • Bos, Frits

Abstract

The official national accounts statistics do not show the role of human capital in the national economy. A set of satellite tables supplementing the standard national accounts statistics could serve this data need. In this satellite account, expenditure on education and training are recorded as human capital formation. This includes not only the expenditure on primary, secondary and tertiary education, but also expenditure on training and courses by employers and the earnings foregone by students. Consumption of human capital is allocated to various persons and industries as a charge on their income; it is not part of final consumption expenditure. The satellite shows more comprehensively than OECD Education at a Glance who pays for human capital formation. It also shows how education and training are employed in the national economy. In line with calculations of private and social rates of return, taxes and subsides on labour income and the relative prices of various types of labour (high-skilled, medium-skilled, low-skilled) are also shown. Links could be made with labour accounts broken-down by level of education, productivity and growth accounts and tables on expenditure by function of government, households and corporations. A simple decomposition analysis can show the role of demography and participation rates in the development of public expenditure on education. The satellite could be regarded as a macroeconomic framework supplementing the OECD-statistic Education at a Glance.

Suggested Citation

  • Bos, Frits, 2011. "A national accounts satellite for human capital and education," MPRA Paper 33791, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33791
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/33791/1/MPRA_paper_33791.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Bos, Frits & Hollanders, Hugo & Keuning, Steven J, 1994. "A Research and Development Module Supplementing the National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(3), pages 273-286, September.
    3. Theodore W. Schultz, 1960. "Capital Formation by Education," Journal of Political Economy, University of Chicago Press, vol. 68, pages 571-571.
    4. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, March.
    5. Robert E. Lipsey & Helen Stone Tice, 1989. "The Measurement of Saving, Investment, and Wealth," NBER Books, National Bureau of Economic Research, Inc, number lips89-1, March.
    6. Bos, Frits, 2006. "De Nederlandse collectieve uitgaven in historisch perspectief [Dutch public expenditure in historical perspective]," MPRA Paper 40602, University Library of Munich, Germany.
    7. Eisner, Robert, 1988. "Extended Accounts for National Income and Product," Journal of Economic Literature, American Economic Association, vol. 26(4), pages 1611-1684, December.
    8. F. A. Lutz, 1961. "The Theory of Capital," International Economic Association Series, Palgrave Macmillan, number 978-1-349-08452-4 edited by D. C. Hague, December.
    9. Bos, Frits, 2009. "The National Accounts as a Tool for Analysis and Policy; History, Economic Theory and Data Compilation Issues," MPRA Paper 23582, University Library of Munich, Germany.
    10. Bos, Frits, 2008. "Uses of National Accounts; History, International Standardization and Applications in the Netherlands," MPRA Paper 9387, University Library of Munich, Germany.
    11. B. F. Kiker, 1966. "The Historical Roots of the Concept of Human Capital," Journal of Political Economy, University of Chicago Press, vol. 74, pages 481-481.
    12. Frits Bos & Hugo Hollanders & Steven J. Keuning, 1994. "A Research And Development Module Supplementing The National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(3), pages 273-286, September.
    13. Dale Jorgenson & Barbara M. Fraumeni, 1989. "The Accumulation of Human and Nonhuman Capital, 1948-84," NBER Chapters, in: The Measurement of Saving, Investment, and Wealth, pages 227-286, National Bureau of Economic Research, Inc.
    14. Mary Jean Bowman, 1966. "The Costing of Human Resource Development," International Economic Association Series, in: E. A. G. Robinson & J. E. Vaizey (ed.), The Economics of Education, chapter 0, pages 421-450, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gang Liu, 2015. "A stylized satellite account for human capital," Discussion Papers 816, Statistics Norway, Research Department.
    2. Iacopo Odoardi & Carmen Pagliari, 2020. "Household Wealth as a Factor of Economic Growth: A Case Study of Italy," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(3), September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bos, Frits, 2009. "The National Accounts as a Tool for Analysis and Policy; History, Economic Theory and Data Compilation Issues," MPRA Paper 23582, University Library of Munich, Germany.
    2. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    3. Dur, Robert & Glazer, Amihai, 2008. "Subsidizing Enjoyable Education," Labour Economics, Elsevier, vol. 15(5), pages 1023-1039, October.
    4. Max Gillman, 2019. "A Human Capital Theory of Structural Transformation," CERGE-EI Working Papers wp648, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Trofimov, Ivan D. & Baawi, Nurulhana A., 2020. "Human Capital: State of the Field and Ways to Extend the Concept," MPRA Paper 107039, University Library of Munich, Germany.
    6. Narayan, Seema & Narayan, Paresh Kumar & Mishra, Sagarika, 2010. "Investigating the relationship between health and economic growth: Empirical evidence from a panel of 5 Asian countries," Journal of Asian Economics, Elsevier, vol. 21(4), pages 404-411, August.
    7. Jayasooriya, Sujith, 2020. "Revised Macro-Mincer Model for Human Capital Investment in Economic Growth," MPRA Paper 100747, University Library of Munich, Germany.
    8. Hulten, Charles R., 2010. "Growth Accounting," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 987-1031, Elsevier.
    9. Bos, Frits, 1995. "Economic theory and national accounting," MPRA Paper 5955, University Library of Munich, Germany.
    10. Bos, Frits, 1993. "Standard national accounting concepts, economic theory and data compilation issues; on constancy and change in the UN-Manuals on national accounting (1947, 1953, 1968, 1993)," MPRA Paper 2656, University Library of Munich, Germany.
    11. Aykut Kibritçioglu, 2002. "On the Smithian origins of "new" trade and growth theories," Economics Bulletin, AccessEcon, vol. 2(1), pages 1-15.
    12. Alexandre Rambaud & Jacques Richard, 2016. "The " Triple Depreciation Line " (TDL) accounting model and its application to the Human Capital," Working Papers hal-01260004, HAL.
    13. Alla Kirova, 2011. "Evolution of the Human Capital Doctrine," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 94-131.
    14. Arazmuradov, Annageldy & Martini, Gianmaria & Scotti, Davide, 2014. "Determinants of total factor productivity in former Soviet Union economies: A stochastic frontier approach," Economic Systems, Elsevier, vol. 38(1), pages 115-135.
    15. Jim Malley & Ulrich Woitek, 2009. "Productivity shocks and aggregate cycles in an estimated endogenous growth model," IEW - Working Papers 416, Institute for Empirical Research in Economics - University of Zurich.
    16. Kaushal, Kaushalendra Kumar, 2014. "Pathway from nutrition intake to wage among elementary workers in India," MPRA Paper 56652, University Library of Munich, Germany.
    17. Konstantinos Angelopoulos & Jim Malley & Apostolis Philippopoulos, 2008. "Welfare implications of public education spending rules," Working Papers 2008_37, Business School - Economics, University of Glasgow.
    18. Tao, Hung-Lin & Stinson, Thomas F., 1997. "An Alternative Measure of Human Capital Stock," Bulletins 7466, University of Minnesota, Economic Development Center.
    19. Ortiz Quevedo Carlos Humberto & Jiménez Restrepo Diana Marcela, 2015. "El Crecimiento Económico Y El Poder Adquisitivo En Colombia," Documentos de Trabajo 12887, Universidad del Valle, CIDSE.
    20. Les OXxley & Ttrinh Le & John Gibson, 2008. "Measuring Human Capital: Alternative Methods and International Evidence," Korean Economic Review, Korean Economic Association, vol. 24, pages 283-344.
    21. Trinh Le & John Gibson & Les Oxley, 2003. "Cost‐ and Income‐based Measures of Human Capital," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 271-307, July.

    More about this item

    Keywords

    Human capital; education; economic growth; public expenditure on education; national accounts satellite; statistics on education;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33791. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.