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Human Capital Prices, Productivity and Growth

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Separate identification of the price and quantity of human capital has important implications for understanding key issues in labor economics and macroeconomics. Price and quantity series are derived and subjected to robustness checks. The human capital price series associated with different education levels are highly correlated and exhibit a strong secular trend. Three resulting implications are explored: (1) using the derived quantities life-cycle profiles are re-examined; (2) the rising college premium is reinterpreted and found to be mainly driven by relative quantity changes, and (3) adjusting the labor input for quality increases dramatically reduces the contribution of MFP to growth.

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Paper provided by University of Western Ontario, CIBC Centre for Human Capital and Productivity in its series University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers with number 20085.

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Date of creation: 2008
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Handle: RePEc:uwo:hcuwoc:20085

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Postal: CIBC Centre for Human Capital and Productivity, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/cibc_workingpapers.html

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Citations

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Cited by:
  1. Audra J. Bowlus & Chris Robinson, 2012. "Human Capital Prices, Productivity, and Growth," American Economic Review, American Economic Association, vol. 102(7), pages 3483-3515, December.
  2. Elisa Keller, 2013. "Occupational Complexity, Experience, and the Gender Wage Gap," 2013 Meeting Papers 348, Society for Economic Dynamics.
  3. Zeynep Elitas & Hakan Ercan & Semih Tumen, 2014. "Reassessing the Trends in the Relative Supply of College-Equivalent Workers in the U.S. : A Selection-Correction Approach," Working Papers 1410, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
  4. Lutz Hendricks & Todd Schoellman, 2013. "Student Abilities During the Expansion of US Education," CESifo Working Paper Series 4537, CESifo Group Munich.
  5. John Bailey Jones & Fang Yang, 2012. "Skill-Biased Technical Change and the Cost of Higher Education," Discussion Papers 12-08, University at Albany, SUNY, Department of Economics.
  6. Nancy L. Stokey, 2012. "Catching Up and Falling Behind," NBER Working Papers 18654, National Bureau of Economic Research, Inc.

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