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Process of accumulation of Italian human capital

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  • Lovaglio, Pietro Giorgio

Abstract

Human capital (HC), from the economical point of view, is defined as a stock variable that represents the capacity of an individual generated by investment in education and work experience to produce a sustained flow of income throughout the life span. The proposed approaches that consider HC as unidimensional latent variable are recent and start from the economic theory specified in Dagum's recursive model [Dagum, C., 1994. Human capital, income and wealth distribution models and their applications to the USA. In: Proceedings of the American Statistical Association, pp. 253-258] which purports to explain the determination and the distribution of income, wealth, debt and HC. The aim of the present article is to generalize the previous approaches to the case of human capital conceived as a latent variable, composed by two main dimensions (Education HC and Work experience HC), underlying the process of determination of earned and capital income. The model is applied to the estimate of Italian household human capital in 2000 and compared with the US household human capital.

Suggested Citation

  • Lovaglio, Pietro Giorgio, 2008. "Process of accumulation of Italian human capital," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 342-356, December.
    • Handle: RePEc:eee:streco:v:19:y:2008:i:4:p:342-356
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    2. Pietro Giorgio Lovaglio & Giuseppe Folloni, 2011. "The estimation of Human Capital in structural models with flexible specification," Working Papers 11, AlmaLaurea Inter-University Consortium.
    3. Pietro Giorgio Lovaglio & Gianmarco Vacca & Stefano Verzillo, 2016. "Human capital estimation in higher education," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 10(4), pages 465-489, December.
    4. Giuseppe Folloni & Giorgio Vittadini, 2010. "Human Capital Measurement: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 248-279, April.
    5. TJ Friderichs & F. M. Correa, 2022. "Measuring human capital in South Africa across socioeconomic subgroups using a latent-variable approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1161-1185, December.

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