Human capital values and returns: Bounds implied by earnings and asset returns data
Mark Huggett () and
Journal of Economic Theory, 2011, vol. 146, issue 3, 897-919
We provide theory for calculating bounds on both the value of an individual[modifier letter apostrophe]s human capital and the return on an individual[modifier letter apostrophe]s human capital, given knowledge of the process governing earnings and financial asset returns. We calculate bounds using U.S. data on male earnings and financial asset returns. The large idiosyncratic component of earnings risk implies that bounds on values and returns are quite loose. However, when aggregate shocks are the only source of earnings risk, both bounds are tight.
Keywords: Value; of; human; capital; Return; on; human; capital; Asset; pricing (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Human capital values and returns: bounds implied by earnings and asset returns data (2010)
Working Paper: Human Capital Values and Returns:Bounds Implied By Earnings and Asset Returns Data (2010)
Working Paper: Human Capital Values and Returns: Bounds Implied By Earnings and Asset Returns Data (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:146:y:2011:i:3:p:897-919
Access Statistics for this article
Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell
More articles in Journal of Economic Theory from Elsevier
Series data maintained by Dana Niculescu ().