Human capital and per capita product: A comparison of US states**We thank Ann Gray and Carol Murphree (from the Cornell Institute for Social and Economic Research) and Cara Olsen (from the Office of Statistical Consulting, Cornell University) for assistance in assembling the data used in this study. We also thank Jean†Claude Thill, two anonymous referees, Regional Science Seminar participants at Cornell University, and participants at the 45th North American Meetings of the Regional Science Association International for helpful comments and suggestions

This article analyzes the extent to which human capital differences can explain the differences in gross state product (GSP) per capita levels between the richer and poorer states of the US. It uses 1990 Census and Bureau of Economic Analysis data on educational attainment, wage levels of different segments of the labor force, and GSP to compare New York – our representative rich state – with the poorest third of the states. The findings indicate that human capital differences explain at least 49% of the observed difference in GSP per capita between New York and each of the poor states.