scholarly journals The Human Capital Stock: A Generalized Approach

2014 ◽  
Vol 104 (11) ◽  
pp. 3752-3777 ◽  
Author(s):  
Benjamin F. Jones
Keyword(s):  
Human Capital ◽  
Lower Bound ◽  
Capital Stock ◽  
Traditional Approach ◽  
Income Differences ◽  
Poor Countries ◽  
Cross Country ◽  
Human Capital Measurement

This paper reconsiders the traditional approach to human capital measurement in the study of cross-country income differences. Within a broader class of neoclassical human capital aggregators, traditional accounting is found to be a theoretical lower bound on human capital differences across economies. Implementing a generalized accounting empirically illustrates the possibility that capital variation may now account (even fully) for the large income variation between rich and poor countries. These findings reject the constraints on human capital variation that traditional accounting has imposed. (JEL E24, J24)

INTANGIBLE CAPITAL AND INTERNATIONAL INCOME DIFFERENCES

2011 ◽  
Vol 17 (3) ◽  
pp. 621-645 ◽  
Author(s):  
Aamir Rafique Hashmi
Keyword(s):  
Human Capital ◽  
Growth Model ◽  
American Economic Review ◽  
Intangible Capital ◽  
Capital Account ◽  
Income Differences ◽  
Neoclassical Growth Model ◽  
Poor Countries ◽  
Neoclassical Growth

I add intangible capital to a variant of the neoclassical growth model that already features physical and human capital, and study the implications for international income differences. I calibrate the parameters associated with intangible capital by using new estimates of investment in intangibles by Corrado et al. [Review of Income and Wealth 55, 661–685 (2009)] and depreciation rates by Corrado and Hulten [American Economic Review 100, 99–104 (2010)]. I find that for a given efficiency difference between rich and poor countries, the model with intangible capital can explain more than double the income differences of the model without. Put another way, in the benchmark case, differences in intangible capital account for 14.3% of the observed income differences. I also examine the role played by intangible capital in versions of the model with barriers to accumulation. In all the variants that I consider, differences in intangible capital account for 10% to 22% of the observed income differences.

scholarly journals Early Childhood Human Capital and Development

2016 ◽  
Vol 8 (3) ◽  
pp. 145-174 ◽  
Author(s):  
Todd Schoellman
Keyword(s):  
United States ◽  
Human Capital ◽  
Early Childhood ◽  
Standard Model ◽  
Empirical Evidence ◽  
Early Childhood Development ◽  
The United States ◽  
Childhood Development ◽  
Income Differences ◽  
Cross Country

A growing literature stresses the importance of early childhood human capital. I ask whether variation in early childhood investments can help explain cross-country income differences. I provide new empirical evidence: the adult outcomes of refugees are independent of age at arrival to the United States up to age six, despite dramatic improvements in income and environment upon arrival. A standard model is consistent with this finding if parents but not country are important for early childhood development. This finding limits the mechanisms for generating cross-country early childhood human capital differences. I also provide suggestive evidence on parental inputs. (JEL I24, I26, I32, J13, J15, J24, J31)

How Important Is Human Capital for Development? Evidence from Immigrant Earnings

2002 ◽  
Vol 92 (1) ◽  
pp. 198-219 ◽  
Author(s):  
Lutz Hendricks
Keyword(s):  
United States ◽  
Human Capital ◽  
Physical Capital ◽  
The United States ◽  
Immigrant Workers ◽  
Output Gap ◽  
Capital Account ◽  
Income Differences ◽  
Cross Country ◽  
New Evidence

This paper offers new evidence on the sources of cross-country income differences. It exploits the idea that observing immigrant workers from different countries in the same labor market provides an opportunity to estimate their human-capital endowments. These estimates suggest that human and physical capital account for only a fraction of cross-country income differences. For countries below 40 percent of U.S. output per worker, less than half of the output gap relative to the United States is attributed to human and physical capital.

scholarly journals The Lack of Convergence of Latin-America Compared with CESEE

2020 ◽  
Vol 20 (98) ◽  
Author(s):  
Bas Bakker ◽  
Manuk Ghazanchyan ◽  
Alex Ho ◽  
Vibha Nanda
Keyword(s):  
Human Capital ◽  
Latin America ◽  
The United States ◽  
Business Climate ◽  
Income Levels ◽  
Poor Countries ◽  
Climate Indicators ◽  
Output Ratio ◽  
Country Differences ◽  
Cross Country

In the last few decades there has been little convergence of income levels in Latin America with those in the United States, in sharp contrast with both emerging Asia and emerging Europe. This paper argues that lack of convergence was not the result of low investment. Latin America is poorer because of lower human capital levels and lower TFP—not because of a lower capital-output ratio. Cross-country differences of TFP in turn are associated with differences in human capital, governance and business climate indicators. We demonstrate that once levels of human capital and governance are taken into account, there is strong conditional cross-country convergence. Poor countries with high levels of human capital, governance or business climate indicators converge rapidly. Poor countries without those attributes do not. We show that low investment is the result of low TFP and thus GDP growth—not the cause.

scholarly journals Occupational Choice and Investments in Human Capital in Informal Economies

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Lucila Berniell
Keyword(s):  
Human Capital ◽  
Informal Economy ◽  
Occupational Choice ◽  
Capital Investments ◽  
Educational Decisions ◽  
Managerial Skills ◽  
Model Predictions ◽  
Informal Economies ◽  
Human Capital Investments ◽  
Cross Country

AbstractInformality is pervasive in many developing countries and it can affect occupational and educational decisions. Cross-country data shows that the rate of entrepreneurship as well as the gap between the skill premium for entrepreneurs and for workers increase with the size of the informal economy. Also, in countries with larger informal sectors the fraction of high-skilled individuals that choose to be entrepreneurs is larger. To explain these facts, I develop a model economy with human capital investments, occupational choice and an informal sector, in which the investment in human capital improves the efficiency of labor as well as managerial skills, and the technology to produce goods exhibits capital-skill complementarity. Model predictions can account for cross-country evidence and also shed light on the mechanisms at work when the level of informality in the economy increases. In particular, a higher level of informality discourages human capital investments for workers while it incentivizes these investments for the case of some managers, mostly informal but talented.

scholarly journals The macroeconomic effects of COVID-19 in Montenegro: a Bayesian VARX approach

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Gordana Djurovic ◽  
Vasilije Djurovic ◽  
Martin M. Bojaj
Keyword(s):  
Human Capital ◽  
Capital Stock ◽  
Economic Freedom ◽  
Supply And Demand ◽  
Health Expenditures ◽  
Highly Qualified ◽  
Demand And Supply ◽  
Policy Responses ◽  
Out Of Sample ◽  
Policy Measures

Abstract This study examines, diagnoses, and assesses appropriate macroeconomic policy responses of the Montenegrin Government to the outbreak of COVID-19. The model econometrically measures the macroeconomic costs using a Bayesian VARX Litterman/Minessota prior to the pandemic disease in terms of demand and supply loss due to illness and closed activities and their effects on GDP growth in various pandemic scenarios. We explore five economic scenarios—shocks—using the available data from January 2006 to December 2019, following real out-of-sample forecasts generated from January 2020 to December 2020. Sensitivity scenarios spanning January 2020 to June 2020 from ± 10 to ± 60% were analyzed. We observed what happens to the supply and demand sides, namely, GDP, tourism, capital stock, human capital, health expenditures, economic freedom, and unemployment. The results show a toll on the GDP, tourism, unemployment, capital stock, and especially human capital for 2020. The recommended policy measures are public finance spending initiatives focused on securing employment and keeping highly qualified staff in Montenegrin companies. Considering all uncertainties, the rebound of the Montenegrin economy could take a few years to reach pre-COVID 19 output levels.

scholarly journals EXPLORING CROSS-COUNTRY VARIATION IN GOVERNMENT SHARES: WHAT CAN WE LEARN FROM RELATIVE PRODUCTIVITIES?

2012 ◽  
Vol 17 (2) ◽  
pp. 356-372 ◽  
Author(s):  
Maksym Obrizan
Keyword(s):  
Relative Price ◽  
Total Output ◽  
Government Consumption ◽  
Strong Negative Correlation ◽  
Empirical Observation ◽  
Relative Prices ◽  
Neoclassical Growth Model ◽  
Poor Countries ◽  
Cross Country ◽  
Neoclassical Growth

Government shares in total output are characterized by significant variation across countries. I noticed a strong negative correlation between government consumption shares and the price of government services in terms of private consumption. Motivated by this empirical observation, I developed a neoclassical growth model with added government that is capable of matching the variation in government shares very closely using only relative prices. In addition, I provide empirical evidence showing that the relative price of government consumption increases with income, which is consistent with distortions prevailing in poor countries. These two observations combined imply that government shares tend to be higher in poorer countries.

scholarly journals Measuring the UK's human capital stock

2010 ◽  
Vol 4 (11) ◽  
pp. 36-63 ◽  
Author(s):  
Richard Jones ◽  
Blessing Chiripanhura
Keyword(s):  
Human Capital ◽  
Capital Stock
Sign in / Sign up

Export Citation Format

Share Document