search query: @author Sala-i-Martin, X. / total: 2
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| Author: | Mulligan, C. B. Sala-i-Martin, X. |
| Title: | A labor income-based measure of the value of human capital: An application to the states of the United States |
| Journal: | Japan and the World Economy
1997 : VOL. 9:2, p. 159-191 |
| Index terms: | HUMAN CAPITAL GROWTH MODELS USA |
| Language: | eng |
| Abstract: | It is argued in the paper that a sensible measure of the aggregate value of human capital is the ratio of total labor income per capita to the wage of a person with zero years of schooling. The reason is that total labor income not only incorporates human capital but also physical capital: given human capital regions with higher physical capital will tend to have higher wages for all workers and, therefore, higher labor income. It is found that a way to net out the effect of aggregate physical capital on labor income is to divide labor income by the wage of a zero-schooling worker. For the average U.S. state, the measure of the study suggests that the value of human capital during the 1980s grew at a much larger rate than schooling. The reason has to do with movements in the relative productivities of the different workers: in some sense, some workers and some types of schooling became more relevant in the 1980s and, as a result, measured human capital increased. |
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