Looking for the Right Human Capital Proxy

Issue: 2010/2-3

Rudolf Kubík

Katedra veřejných financí,
VŠE v Praze
nám. W. Churchilla 4
Praha 3

rudolf.kubik@vse.cz

This paper aims to test different approaches of human capital stock approximation. It faces one of the main questions in explaining link between human capital and economic growth. It tries to step forward in answering what is the best proxy of human capital. It starts from Barro & Lee and Cohen & Soto datasets which are expanded by Mincerian approach to human capital measurement and educational structure of population as a human capital proxy. The original dataset covering 73 countries within 1960-1990 is being re-tested and results from panel data regression analyses are compared with expanded dataset.

Pages: 
61-70
DOI: 10.2478/v10135-009-0009-0
JEL: O47, J24, E24
Keywords: panel data regression, Human capital, growth
References: 

AARONSON, D., SULLIVAN, D. (2001). Growth in Worker Quality, Economic Perspectives. Federal Reserve Bank of Chicago: Chicago
AGHION, P., HOWITT, P. (1998). Endogenous growth theory. Boston: MIT.
ARNOLD, J., BASSANINI, A., SCARPETTA, S. (2007). Solow or Lucas? Testing growth models using panel data from OECD countries. OECD Economic department, OECD economic studies. WP 592
BARRO, R., SALA-I-MARTIN, X. (2004). Economic Growth. Boston: MIT.
BARRO, R., LEE, J.W. (2000). International data on educational attainment: Updates and implications. Center for international development at Harvard University: Harvard Working paper 42, 2000.
BENHABIB, J., SPIEGEL, M.M. (1994). The Role of Human Capital in Economic Development: Evidence from Aggregate Cross-country Data. Journal of Monetary Economics. 34(2), Pp. 143-173.
BILS, M., KLENOW, P. (2000). Does schooling cause growth? American economic review. 90(5). Pp. 1160-83.
COHEN, D., SOTO, M. (2007). Growth and human capital: Good data, good results. Journal of economic growth. 12(1). Pp. 51-76.
DE LA FUENTE, A. (2003). Human capital in a global and knowledge-based economy part II.: assessment at the EU country level. Final report. CSIC.
DE LA FUENTE, A., DOMENECH, R. (2006). Human Capital in Growth Regression: How Much Difference Does Quality Data Make? Journal of the European Economic Association, 4(1). Pp. 1-36.
DENISON, E.F. (1962). The sources of economic growth in the United States and the alternatives before Us, New York.
ECB. (2006). Growth in euro area labor quality. Working paper no. 575/2006. Frankfurt: ECB.
HANUSHEK, E., KIMKO, D., (2000). Schooling, labor force quality, and the growth of nations. The American Economic Review 90(5), 1184-1208.
HO, M., JORGENSON, D. (1999). The quality of the U.S. Workforce – 1948-1998. Harvard University.
JORGENSON, D. GRILICHES, Z. (1968). The Explanation of Productivity Change. Review of Economic Studies 34, pp. 249-280.
KRUGER, A., LINDHAL, M. (2001). Education for growth: Why and for whom? Journal for economic literature. Vol. 39(4). Pp. 1101-36.
LOENING, J. L. (1996). Effects of primary, secondary and tertiary education on economic growth – Evidence from Guatemala. World Bank. Working paper no. 3610/1996.
MINCER, J. (1974). Schooling, Earnings, and Experience. Columbia U. Press.: New York.
PRICHETT, L. (2001). Where has all the education gone? World bank economic review. 15(3). Pp. 367-391.
HESTON, A., SUMMERS, R., ATEN, B. (2006), Penn World Table Version 6.2, Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania.
SODERBOM, M. (2001). Trade and human capital as determinants of growth. University of Oxford, Working paper 10/2001.
SOTO, M. (2002). Rediscovering education in growth regressions. OECD: Paris.
SOTO, M. (2008). The casual effect of education on aggregate income. OECD: Barcelona.
TANG, T. MacLEOD, C. (2006). Labor force ageing and productivity performance in Canada. Canadian journal of economics. Vol. 39, No. 2, 5/2006.