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Human Capital and Development Accounting: New Evidence from Immigrant Earnings

Author

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  • Todd Schoellman

    (Arizona State University)

  • Lutz Hendricks

    (UNC Chapel Hill)

Abstract

This paper constructs quality adjusted labor inputs for 50 countries, disaggregated into 7 school levels. Our estimates of labor qualities are based on the wages of immigrants observed in 11 host countries. Based on these estimated labor inputs, we address two questions. First, we estimate the contribution of human capital to variation in output per worker across countries. We find that labor quality accounts for 12% of this variation, while capital and labor inputs jointly account for 43%. Second, we study the cross-country variation in the relative productivities of skilled and unskilled workers. Since we find little evidence of variation in the relative qualities of skilled versus unskilled workers, we conclude that more educated countries employ more skill biased technologies.

Suggested Citation

  • Todd Schoellman & Lutz Hendricks, 2014. "Human Capital and Development Accounting: New Evidence from Immigrant Earnings," 2014 Meeting Papers 702, Society for Economic Dynamics.
    • Handle: RePEc:red:sed014:702
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    Cited by:

    1. Jones, C.I., 2016. "The Facts of Economic Growth," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 3-69, Elsevier.
    2. David Lagakos & Benjamin Moll & Tommaso Porzio & Nancy Qian & Todd Schoellman, 2018. "Life-Cycle Human Capital Accumulation across Countries: Lessons from US Immigrants," Journal of Human Capital, University of Chicago Press, vol. 12(2), pages 305-342.

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