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Measuring Human Capital in Canada


  • Mireille Laroche
  • Marcel Mérette


This paper presents a labour income based measure of Canada's human capital stock from 1971 to 1996 based on the completion of education levels and the number of years of working experience. Unlike measures of human capital based on average years of schooling, this measure does not assume that the productivity differential among workers is proportional to the differential in educational attainment. It also strives to capture differences in quality of education as well as the market relevance of different types of education and of working experience. This measure of Canada's human capital stock can be used in endogenous growth models, empirical accounting exercises, as well as in the assessment of labour market issues. Le document présente une mesure, établie d’après le revenu du travail, du stock de capital humain au Canada, de 1971 à 1996, compte tenu du niveau d’instruction atteint et du nombre d’années d’expérience de travail. Contrairement aux mesures du capital humain établies d’après le nombre moyen d’années de scolarité, cette mesure ne repose pas sur l’hypothèse que l’écart de productivité entre les travailleurs est proportionnel à l’écart relatif au niveau de scolarité. De plus, elle vise à saisir les écarts liés à la qualité de l’éducation et à la pertinence des divers genres d’études et d’expériences de travail par rapport au marché. Cette mesure du stock de capital humain du Canada peut constituer une variable dans les modèles de croissance endogènes et être utilisée aux fins d’activités comptables empiriques et de l’évaluation des questions inhérentes au marché du travail.

Suggested Citation

  • Mireille Laroche & Marcel Mérette, "undated". "Measuring Human Capital in Canada," Working Papers-Department of Finance Canada 2000-05, Department of Finance Canada.
  • Handle: RePEc:fca:wpfnca:2000-05

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    References listed on IDEAS

    1. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," Review of Economic Studies, Oxford University Press, vol. 34(3), pages 249-283.
    2. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    3. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
    4. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-362, June.
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    Cited by:

    1. de la Croix, David & Docquier, Frederic & Liegeois, Philippe, 2007. "Income growth in the 21st century: Forecasts with an overlapping generations model," International Journal of Forecasting, Elsevier, vol. 23(4), pages 621-635.
    2. 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.
    3. Aurora A. C. Teixeira, 2004. "Measuring aggregate human capital in Portugal. An update up to 2001," FEP Working Papers 152, Universidade do Porto, Faculdade de Economia do Porto.
    4. Trinh Le & John Gibson & Les Oxley, 2005. "Measures of human capital: A review of the literature," Treasury Working Paper Series 05/10, New Zealand Treasury.
    5. Haizheng Li & Barbara M. Fraumeni & Zhiqiang Liu & Xiaojun Wang, 2009. "Human Capital In China," NBER Working Papers 15500, National Bureau of Economic Research, Inc.

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