The human capital stock: a generalized approach: comment

Caselli, Francesco ORCID: 0009-0001-5191-7156 and Ciccone, Antonio (2019) The human capital stock: a generalized approach: comment. American Economic Review, 109 (3). pp. 1155-1174. ISSN 0002-8282

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Abstract

Jones (2014) examines development accounting with imperfect substitutability between different types of skills in the production of output. He finds that human capital variation can account for the totality of the variation in income across countries. We show that this finding is entirely due to an assumption that the relative wage of skilled workers is solely determined by attributes of workers (once the supply of skilled workers is accounted for). If skill premia are predominantly determined by technology, institutions, and other features of the economic environment, human capital differences explain none of the variation in income per worker.

Item Type:	Article
Additional Information:	© 2019 American Economic Association
Divisions:	Economics
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E24 - Macroeconomics: Employment; Unemployment; Wages; Intergenerational Income Distribution (includes wage indexation) J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited:	15 Mar 2019 11:42
Last Modified:	08 Nov 2024 05:39
URI:	http://eprints.lse.ac.uk/id/eprint/100254

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