The Value of Human Capital in Colombia, 2001-2009: An Estimate Based on the Lifetime Income Approach
Posted: 11 Oct 2013
Date Written: October 9, 2013
This study employed the lifetime income approach to estimate the value of Colombia’s human capital stock between 2001 and 2009. The findings demonstrate that aggregate stock grew 3.24% over the period. A gender breakdown showed that men contributed more to this growth rate than did women, as did those who had completed higher education compared to those who had not, while analysis by age group showed that younger individuals contributed more than their elders. Likewise, the rates of gross investment, depreciation and revaluation of human capital were estimated at 7.48%, 4.44% and 0.1% respectively, yielding a net investment rate of 3.09%. Finally, although the stock was sensitive to parametric changes, growth rates appeared relatively unaffected overall.
Keywords: Human capital, Jorgenson-Fraumeni methodology, future income stream, aggregate stock, Divisia Index
JEL Classification: C43, E29, I29, J24, J3, O15
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