Experience Matters: Human Capital and Development Accounting
65 Pages Posted: 1 Feb 2013
There are 2 versions of this paper
Experience Matters: Human Capital and Development Accounting
Date Written: December 2012
Abstract
Using recently available large-sample micro data from 36 countries, we document that experience-earnings profiles are flatter in poor countries than in rich countries. Motivated by this fact, we conduct a development accounting exercise that allows the returns to experience to vary across countries but is otherwise standard. When the country-specific returns to experience are interpreted in such a development accounting framework -- and are therefore accounted for as part of human capital -- we find that human and physical capital differences can account for almost two thirds of the variation in cross-country income differences, as compared to less than half in previous studies.
Keywords: Cross-country income, Development Accounting, Returns to Experience
JEL Classification: O11
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Population, Technology, and Growth: From the Malthusian Regime to the Demographic Transition
By Oded Galor and David N. Weil
-
By Oded Galor and David N. Weil
-
The Gender Gap, Fertility and Growth
By Oded Galor and David N. Weil
-
The Gender Gap, Fertility, and Growth
By Oded Galor and David N. Weil
-
By Gary D. Hansen and Edward C. Prescott
-
Natural Selection and the Origin of Economic Growth
By Oded Galor and Omer Moav
-
Natural Selection and the Origin of Economic Growth
By Oded Galor and Omer Moav
-
From Stagnation to Growth: Unified Growth Theory
By Oded Galor
-
From Stagnation to Growth: Unified Growth Theory
By Oded Galor
-
From Physical to Human Capital Accumulation: Inequality in the Process of Development
By Oded Galor and Omer Moav