Abstract

http://ssrn.com/abstract=226297
 
 

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Why Do Some Countries Produce so Much More Output Per Worker than Others?


Robert E. Hall


Stanford University - The Hoover Institution on War, Revolution and Peace; National Bureau of Economic Research (NBER)

Charles I. Jones


Stanford Graduate School of Business; National Bureau of Economic Research (NBER)

June 1999

NBER Working Paper No. w6564

Abstract:     
Output per worker varies enormously across countries. Why? On an accounting basis, our analysis shows that differences in physical capital and educational attainment can only partially explain the variation in output per worker we find a large amount of variation in the level of the Solow residual across countries. At a deeper level, we document that the differences in capital accumulation, productivity, and therefore output per worker are driven by differences in institutions and government policies, which we call social infrastructure. We treat social infrastructure as endogenous, determined historically by location and other factors captured in part by language.

Number of Pages in PDF File: 51

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Date posted: June 10, 2000  

Suggested Citation

Hall, Robert E. and Jones, Charles I., Why Do Some Countries Produce so Much More Output Per Worker than Others? (June 1999). NBER Working Paper No. w6564. Available at SSRN: http://ssrn.com/abstract=226297

Contact Information

Robert E. Hall (Contact Author)
Stanford University - The Hoover Institution on War, Revolution and Peace ( email )
Stanford, CA 94305-6010
United States
650-723-2215 (Phone)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
650-723-2215 (Phone)
Charles I. Jones
Stanford Graduate School of Business ( email )
Stanford GSB
655 Knight Way
Stanford, CA 94305-4800
United States
650-725-9265 (Phone)
HOME PAGE: http://www.stanford.edu/~chadj

National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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