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A stylized satellite account for human capital

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Abstract

This paper presents a satellite account in which investment in human capital is considered as a produced product/asset. It is not the education sector but the individual person taking education or training/courses that is the genuine producer of human capital. The former only provides education services that are used as one of the production inputs for the latter. Since another fundamental input is own labor services, human capital produced and embodied in the individual is regarded as being owned by the person in concern. It is demonstrated that the gross operating surplus generated from the production of human capital equals the differences between the estimates by the cost-based and the income-based approaches, which constitutes the first step towards making reconciliation between the estimates within one and the same framework. Finally, a numerical example based on supply and use tables shows the feasibility of implementing such a satellite account in practice.

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  • Gang Liu, 2015. "A stylized satellite account for human capital," Discussion Papers 816, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:816
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    1. Bos, Frits, 2011. "A national accounts satellite for human capital and education," MPRA Paper 33791, University Library of Munich, Germany.
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    6. Astrid Oline Ervik & Erling Holmøy & Torbjørn Hægeland, 2003. "A Theory-Based Measure of the Output of the Education Sector," Discussion Papers 353, Statistics Norway, Research Department.
    7. Diewert, Erwin, 2008. "The Measurement of Nonmarket Sector Outputs and Inputs Using Cost Weights," Economics working papers diewert-08-01-18-09-21-07, Vancouver School of Economics, revised 13 Nov 2008.
    8. Romina Boarini & Marco Mira d'Ercole & Gang Liu, 2012. "Approaches to Measuring the Stock of Human Capital: A Review of Country Practices," OECD Statistics Working Papers 2012/4, OECD Publishing.
    9. John W. Kendrick, 1976. "The Formation and Stocks of Total Capital," NBER Books, National Bureau of Economic Research, Inc, number kend76-1, March.
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    Cited by:

    1. Gang Liu & Barbara M. Fraumeni, 2020. "A Brief Introduction to Human Capital Measures," NBER Working Papers 27561, National Bureau of Economic Research, Inc.
    2. Liu, Gang & Fraumeni, Barbara M., 2020. "A Brief Introduction to Human Capital Measures," IZA Discussion Papers 13494, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    human capital; satellite account; output of education sector; supply and use tables;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • 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
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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