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Human Capital Prices, Productivity and Growth

  • Bowlus, Audra J.
  • Robinson, Chris

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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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%2089%20-%20Bowlus%20and%20Robinson.pdf
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Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2011-32.

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Length: 70 pages
Date of creation: 22 Dec 2011
Date of revision: 22 Dec 2011
Handle: RePEc:ubc:clssrn:clsrn_admin-2011-32
Contact details of provider: Web page: http://www.clsrn.econ.ubc.ca/

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  15. Weiss, Yoram, 1987. "The determination of life cycle earnings: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 11, pages 603-640 Elsevier.
  16. David Card & Thomas Lemieux, 2000. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," NBER Working Papers 7655, National Bureau of Economic Research, Inc.
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  18. Jaeger, David A, 1997. "Reconciling the Old and New Census Bureau Education Questions: Recommendations for Researchers," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(3), pages 300-309, July.
  19. Audra J. Bowlus & Chris Robinson, 2010. "Human Capital Prices, Productivity and Growth," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20104, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
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  21. Audra J. Bowlus & Haoming Liu & Chris Robinson, 2005. "Human Capital, Productivity and Growth," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20052, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  22. Matthew Johnson & Michael P. Keane, 2013. "A Dynamic Equilibrium Model of the US Wage Structure, 1968–1996," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 1 - 49.
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