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On aggregating human capital across heterogeneous cohorts

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  • Growiec, Jakub
  • Groth, Christian

Abstract

This paper studies the question: Can the microeconomic Mincerian (log-linear) functional relationship between human capital, years of schooling and work experience be recovered in some similar form at the macroeconomic level? A large macroeconomic literature assumes so, warranting that the question is of interest. We first examine the question at a theoretical level and find that except under very special assumptions, the answer is in the negative. On the other hand, we also show numerically that a macro-Mincer relationship can nevertheless be perceived as a quantitatively reasonable approximation of the theoretically derived “true” relationship, at least if the observed heterogeneity comes only from differences in the number of years of schooling, retirement age, or demographic survival laws.

Suggested Citation

  • Growiec, Jakub & Groth, Christian, 2015. "On aggregating human capital across heterogeneous cohorts," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 21-38.
    • Handle: RePEc:eee:matsoc:v:78:y:2015:i:c:p:21-38
    DOI: 10.1016/j.mathsocsci.2015.09.003
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    Cited by:

    1. Christian Groth & Jakub Growiec, 2017. "Do Mincerian Wage Equations Inform How Schooling Influences Productivity?," EUSP Department of Economics Working Paper Series 2017/04, European University at St. Petersburg, Department of Economics.
    2. Growiec, Jakub & Groth, Christian, 2015. "On aggregating human capital across heterogeneous cohorts," Mathematical Social Sciences, Elsevier, vol. 78(C), pages 21-38.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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