Working Paper: CEPR ID: DP3025
Authors: Daniel Cohen; Marcelo Soto
Abstract: This Paper presents a new set of data on human capital. It is constructed so as to stay as close as possible to the censuses compiled by national, OECD or UNESCO sources. We then use these data to test a model that embeds the Mincerian approach to human capital into the Mankiw, Romer and Weil version of the neo-classical model. We find that the model performs extremely well. Physical and human capital appears to carry social returns that are essentially identical to the private ones.
Keywords: Education; Growth; Human Capital
JEL Codes: I12; O40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Human capital (J24) | Economic growth (O49) |
| Physical capital (E22) | Economic growth (O00) |