A Forward-Looking Measure of the Stock of Human Capital in New Zealand

17 Pages Posted: 17 Aug 2006

See all articles by Trinh Le

Trinh Le

Motu Economic and Public Policy Research Trust

John Gibson

University of Waikato; Motu Economic and Public Policy Research

Leslie T. Oxley

University of Canterbury

Abstract

Human capital is increasingly believed to play an important role in the growth process; however, adequately measuring its stock remains controversial. Because the estimated impact that human capital has on economic growth is sensitive to the measures or proxies of human capital, accurate and consistent measures are needed. While many measures of human capital have been developed, most rely on some proxy of educational experience and are thus plagued with limitations. In this study, we modify the lifetime labour income approach outlined by Jorgenson and Fraumeni (The Measurement of Savings, Investment and Wealth, Chicago, IL, University of Chicago Press, 1989, pp. 227-282; Output Measurement in the Services Sector, Chicago, IL, University of Chicago Press, 1992, pp. 303-338) to estimate the monetary value of the human capital stock for New Zealand. Based on data from the New Zealand Census of Population, we find that the country's working human capital grew by half between 1981 and 2001, mostly due to the rise in employment level. This stock of human capital was also well over double that of physical capital in all the census years studied.

Suggested Citation

Le, Trinh and Gibson, John and Oxley, Leslie T., A Forward-Looking Measure of the Stock of Human Capital in New Zealand. Manchester School, Vol. 74, No. 5, pp. 593-609, September 2006, Available at SSRN: https://ssrn.com/abstract=925085 or http://dx.doi.org/10.1111/j.1467-9957.2006.00511.x

Trinh Le (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

John Gibson

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Motu Economic and Public Policy Research

19 Milne Terrace
Island Bay
Wellington, 6002
New Zealand

Leslie T. Oxley

University of Canterbury ( email )

Department of Economics
Private Bag 4800
Christchurch
New Zealand
+64-3-3642134 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
22
Abstract Views
691
PlumX Metrics