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The Human Capital Stock: A Generalized Approach*

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  • Benjamin F. Jones

Abstract

This paper reconsiders the traditional approach to human capital measurement in the study of cross-country income differences. Within a broader class of neoclassical human capital aggregators, traditional accounting is found to be a theoretical lower bound on human capital difference across economies. Implementing a generalized accounting empirically illustrates the possibility that capital variation may now account (even fully) for the large income variation between rich and poor countries. These findings reject the constraints on human capital variation that traditional accounting has imposed.

Suggested Citation

  • Benjamin F. Jones, 2014. "The Human Capital Stock: A Generalized Approach," American Economic Review, American Economic Association, vol. 104(11), pages 3752-3777, November.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:11:p:3752-77
    Note: DOI: 10.1257/aer.104.11.3752
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    Replication

    This item has been replicated by:
  • Francesco Caselli & Antonio Ciccone, 2019. "The Human Capital Stock: A Generalized Approach: Comment," American Economic Review, American Economic Association, vol. 109(3), pages 1155-1174, March.

    • More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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