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Measuring Human Capital in Portugal

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  • João Paulo Pereira

    (Ministério das Finanças)

Abstract

Although human capital is widely used as an input in modern economic growth models, in empirical studies, its importance in explaining economic growth is still an open issue. In fact, results range from influence in Gross Domestic Product growth rates to just a levels effect, and there are even several studies that find no significant explaining capability of human capital in economic growth. Human capital is usually measured through a proxy related to the population knowledge or to education. These proxies are prone to important measurement errors that may be the basis for the different found results of their effects on economic growth. The present study recognizes the importance of a good measure of human capital. It builds three annual series for Portugal, one of them based on years of schooling for the period 1960 to 2001, with a methodology different from other studies available for Portugal, and two others based on the market labour income for the period 1982 to 1998.

Suggested Citation

  • João Paulo Pereira, 2005. "Measuring Human Capital in Portugal," Notas Económicas, Faculty of Economics, University of Coimbra, issue 21, pages 16-34, June.
  • Handle: RePEc:gmf:journl:y:2005:i:21:p:16-34
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    File URL: http://notas-economicas.fe.uc.pt/pt/numbers/number021n.htm
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    Cited by:

    1. Aurora A.C. Teixeira & Natércia Fortuna, 2006. "Human capital, trade and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," FEP Working Papers 226, Universidade do Porto, Faculdade de Economia do Porto.
    2. Pereira, João & St. Aubyn, Miguel, 2009. "What level of education matters most for growth?: Evidence from Portugal," Economics of Education Review, Elsevier, vol. 28(1), pages 67-73, February.
    3. Sara Corujo & Marta Simões, 2012. "Democracy and Growth: Evidence for Portugal (1960–2001)," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(3), pages 512-528, March.

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