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Human Capital Productivity: A New Concept for Productivity Analysis

  • Barbara M. Fraumeni

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    The concept of human capital, defined as the discounted value of future earnings, has a long history in economics. But human capital has never been directly linked to productivity. This article makes an attempt to bring the concepts of human capital and labour productivity together by introducing a new term, human capital productivity, which is defined as the ratio between an index of discounted future output and an index of human capital. While still in its very early stages of conceptual development and without empirical estimates, the concept of human capital productivity may contribute significantly to our understanding of the role human capital plays in potential output growth.

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    File URL: http://www.csls.ca/ipm/24/IPM-24-Fraumeni.pdf
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    Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

    Volume (Year): 24 (2012)
    Issue (Month): (Fall)
    Pages: 20-26

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    Handle: RePEc:sls:ipmsls:v:24:y:2012:2
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    1. Carsten A Holz, 2005. "New Capital Estimates for China," Macroeconomics 0512001, EconWPA.
    2. Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Proceedings, Federal Reserve Bank of San Francisco.
    3. Gang Liu, 2011. "Measuring the Stock of Human Capital for Comparative Analysis: An Application of the Lifetime Income Approach to Selected Countries," OECD Statistics Working Papers 2011/6, OECD Publishing.
    4. Lipsey, Robert E. & Tice, Helen Stone (ed.), 1989. "The Measurement of Saving, Investment, and Wealth," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226484686.
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