60 Pages Posted: 12 May 2012
Date Written: May 2012
This paper posits a notion of the value of an individual's human capital and the associated return on human capital. These concepts are examined using U.S. data on male earnings and financial asset returns. We find that (1) the value of human capital is far below the value implied by discounting earnings at the risk-free rate, (2) mean human capital returns exceed stock returns early in life and decline with age, (3) the stock component of the value of human capital is smaller than the bond component at all ages and (4) human capital returns and stock returns have a small positive correlation over the working lifetime.
Suggested Citation: Suggested Citation
Huggett, Mark and Kaplan, Greg, The Money Value of a Man (May 2012). NBER Working Paper No. w18066. Available at SSRN: https://ssrn.com/abstract=2056694