Experience Matters: Human Capital and Development Accounting

David Lagakos, Benjamin Moll, Tommaso Porzio and Nancy Qian

No 2012-021, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: Using recently available large-sample micro data from 36 countries, we document that experience-earnings profiles are flatter in poor countries than in rich countries. Motivated by this fact, we conduct a development accounting exercise that allows the returns to experience to vary across countries but is otherwise standard. When the country-specific returns to experience are interpreted in such a development accounting framework - and are therefore accounted for as part of human capital - we find that human and physical capital differences can account for almost two thirds of the variation in cross-country income differences, as compared to less than half in previous studies.

Keywords: Human Capital; Experience-Earnings Profiles; Development Accounting (search for similar items in EconPapers)
JEL-codes: E24 J24 O11 (search for similar items in EconPapers)
Date: 2012-12
New Economics Papers: this item is included in nep-dev, nep-hrm and nep-mac
Note: M
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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http://humcap.uchicago.edu/RePEc/hka/wpaper/Lagakos_Moll_Porzio_Qian_EM.pdf First version, November 29, 2012 (application/pdf)
http://www.princeton.edu/%7Emoll/EM.pdf
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Related works:
Working Paper: Experience Matters: Human Capital and Development Accounting (2012)
Working Paper: Experience Matters: Human Capital and Development Accounting (2012)
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