A new macroeconomic measure of human capital with strong empirical links to productivity
Botev, Jarmila ; Egert, Balázs ; Smidova, Zuzana ; Turner, David
Organisation for Economic Co-operation and Development, Paris
OECD Publishing - Paris
2019
54 p.
human capital ; productivity ; education
OECD Economics Department Working Papers
1575
Education and training
https://doi.org/10.1787/d12d7305-en
English
Bibliogr.
"This paper calculates new measures of human capital. Contrary to the existing literature, they are based on realistic rates of return to education, which are allowed to vary substantially across countries and to some extent over time. The new measures perform well in regression analysis explaining productivity across OECD countries and over time. In OECD samples, coefficient estimates are broadly consistent with the private returns underlying the construction of the new measures of human capital. In a wider sample of countries, most estimates imply additional positive social returns."
Digital
The ETUI is co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the ETUI.