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Human Capital Prices, Productivity and Growth

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Abstract

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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  • Audra J. Bowlus & Chris Robinson, 2010. "Human Capital Prices, Productivity and Growth," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20104, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
  • Handle: RePEc:uwo:hcuwoc:20104
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    Cited by:

    1. Nancy L. Stokey, 2012. "Catching Up and Falling Behind," NBER Working Papers 18654, National Bureau of Economic Research, Inc.
    2. Paul Sullivan, "undated". "Job Tasks, Time Allocation, and Wages," Working Papers 2017-03, American University, Department of Economics.
    3. Audra J. Bowlus & Chris Robinson, 2010. "Human Capital Prices, Productivity and Growth," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20104, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    4. Todd Stinebrickner & Ralph Stinebrickner & Paul Sullivan, 2017. "Job Tasks, Time Allocation, and Wages," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20176, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    5. Li, Jianglong & Lin, Boqiang, 2017. "Does energy and CO2 emissions performance of China benefit from regional integration?," Energy Policy, Elsevier, vol. 101(C), pages 366-378.
    6. Chris Taber & Nicolas Roys, 2017. "Skill Prices, Occupations and Changes in the Wage Structure," 2017 Meeting Papers 208, Society for Economic Dynamics.
    7. Audra J. Bowlus & Chris Robinson, 2012. "Human Capital Prices, Productivity, and Growth," American Economic Review, American Economic Association, pages 3483-3515.
    8. Robert E. Lucas Jr., 2015. "Human Capital and Growth," American Economic Review, American Economic Association, pages 85-88.
    9. Hendricks, Lutz, 2016. "Accounting for changing returns to experience," CFS Working Paper Series 558, Center for Financial Studies (CFS).
    10. Hendricks, Lutz & Schoellman, Todd, 2014. "Student abilities during the expansion of US education," Journal of Monetary Economics, Elsevier, pages 19-36.
    11. Nirav Mehta, 2017. "The Potential Output Gains from Using Optimal Teacher Incentives: An Illustrative Calibration of a Hidden Action Model," CESifo Working Paper Series 6598, CESifo Group Munich.
    12. John Bailey Jones & Fang Yang, 2016. "Skill-Biased Technical Change and the Cost of Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 621-662.
    13. Zeynep Elitas & Hakan Ercan & Semih Tumen, 2015. "Reassessing the trends in the relative supply of college-equivalent workers in the U.S.: a selection-correction approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 249-273.
    14. Nancy Stokey, 2015. "Catching up and falling behind," Journal of Economic Growth, Springer, vol. 20(1), pages 1-36, March.
    15. Robert Inklaar & Marianna Papakonstantinou, 2017. "Vintage effects in human capital: Europe versus the United States," LIS Working papers 698, LIS Cross-National Data Center in Luxembourg.
    16. Keller, Elisa, 2014. "The slowdown in American educational attainment," Journal of Economic Dynamics and Control, Elsevier, pages 252-270.
    17. Audra J. Bowlus & Eda Bozkurt & Lance Lochner, 2017. "Wages and Employment: The Canonical Model Revisited," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20179, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    18. Audra J. Bowlus & Hiroaki Mori & Chris Robinson, 2016. "Ageing and the Skill Portfolio: Evidence from Job Based Skill Measures," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20161, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    19. Solomon W. Polachek & Tirthatanmoy Das & Rewat Thamma-Apiroam, 2015. "Micro- and Macroeconomic Implications of Heterogeneity in the Production of Human Capital," Journal of Political Economy, University of Chicago Press, vol. 123(6), pages 1410-1455.
    20. repec:eee:joecag:v:7:y:2016:i:c:p:89-103 is not listed on IDEAS
    21. Shi, Xiaojun & Wang, Hung-Jen & Xing, Chunbing, 2015. "The role of life insurance in an emerging economy: Human capital protection, assets allocation and social interaction," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 19-33.
    22. Nancy Stokey, 2012. "Catching Up and Falling Behind," Working Papers 2012-015, Becker Friedman Institute for Research In Economics.

    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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