Human Capital Development

36 Pages Posted: 24 Oct 2010

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2010


This paper has two main objectives. First, it assesses and measures the gaps in the stock of human capital across the world. It presents how effectively different regions are improving their stock of human capital, and how long it will take for developing countries to catch up with the current level of human capital in industrialized countries. Second, it revisits the contribution of human capital to economic growth, proposing a decomposition method to account for employment growth – which is also impacted on by human capital growth – in explaining growth in total output per worker. The proposed methodology introduces employment growth in the growth decomposition through the employment growth elasticity. It is conjectured that as human capital increases, employment growth elasticity will decrease, making the economy less labor-intensive, resulting in higher economic growth. The proposed method points to the importance of the micro linkage between human capital and the labor market.

Keywords: human capital, labor productivity, skills, economic growth, gender, labor market

JEL Classification: J24, O4, O15

Suggested Citation

Son, Hyun H., Human Capital Development (October 1, 2010). Asian Development Bank Economics Working Paper Series No. 225, Available at SSRN: or

Hyun H. Son (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila

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