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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 economics. Price and quantity series are derived for four education levels. The price series are highly correlated and they exhibit a strong secular trend. Three resulting implications are explored: the rising college premium is found to be driven more by relative quantity than relative price changes, life-cycle wage profiles are readily interpretable as reflecting optimal human capital investment paths using the estimated price series, and 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 20104.

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Date of creation: 2010
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Handle: RePEc:uwo:hcuwoc:20104

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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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Cited by:
  1. Bowlus, Audra J. & Robinson, Chris, 2011. "Human Capital Prices, Productivity and Growth," CLSSRN working papers clsrn_admin-2011-32, Vancouver School of Economics, revised 22 Dec 2011.
  2. 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.
  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. Elisa Keller, 2013. "Occupational Complexity, Experience, and the Gender Wage Gap," 2013 Meeting Papers 348, Society for Economic Dynamics.
  5. Lutz Hendricks & Todd Schoellman, 2013. "Student Abilities During the Expansion of US Education," CESifo Working Paper Series 4537, CESifo Group Munich.
  6. Nancy L. Stokey, 2012. "Catching Up and Falling Behind," NBER Working Papers 18654, National Bureau of Economic Research, Inc.

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