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On aggregating human capital across heterogeneous cohorts

Author

Listed:
  • Jakub Growiec

    (National Bank of Poland, Economic Institute; Warsaw School of Economics, Institute of Econometrics)

  • Christian Groth

    (University of Copenhagen, Department of Economics)

Abstract
Based on a general framework for computing the aggregate human capital stock under heterogeneity across population cohorts, the paper derives aggregate human capital stocks in the whole population and in the labor force, and relates these variables to average years of schooling and average work experience. Under the scenarios considered here, the “macro-Mincer” (log-linear) relationship between aggregate human capital and average years of schooling is obtained only in cases which are inconsistent with heterogeneity in years of schooling or based on empirically implausible demographic survival laws. Our numerical results indicate that the macro-Mincer equation can be a reasonable approximation of the true relationship only if returns to schooling and work experience are roughly constant across countries.

Suggested Citation

  • Jakub Growiec & Christian Groth, 2012. "On aggregating human capital across heterogeneous cohorts," NBP Working Papers 134, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:134
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    File URL: https://static.nbp.pl/publikacje/materialy-i-studia/134_en.pdf
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    References listed on IDEAS

    as
    1. Growiec, Jakub & Groth, Christian, 2015. "On aggregating human capital across heterogeneous cohorts," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 21-38.
    2. Caselli, Francesco, 2005. "Accounting for Cross-Country Income Differences," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 9, pages 679-741, Elsevier.
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    7. Growiec, Jakub, 2010. "Human Capital, Aggregation, And Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 14(2), pages 189-211, April.
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    Cited by:

    1. Christian Groth & Jakub Growiec, 2017. "Do MincerianWage Equations Inform How Schooling Influences Productivity?," Discussion Papers 17-12, University of Copenhagen. Department of Economics.
    2. Growiec, Jakub & Groth, Christian, 2015. "On aggregating human capital across heterogeneous cohorts," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 21-38.

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    More about this item

    Keywords

    human capital; aggregation; heterogeneity; population cohort; Mincer equation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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