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Human capital values and returns: Bounds implied by earnings and asset returns data

Mark Huggett () and Greg Kaplan

Journal of Economic Theory, 2011, vol. 146, issue 3, 897-919

Abstract: 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)
Date: 2011
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Working Paper: Human capital values and returns: bounds implied by earnings and asset returns data (2010) Downloads
Working Paper: Human Capital Values and Returns:Bounds Implied By Earnings and Asset Returns Data (2010) Downloads
Working Paper: Human Capital Values and Returns: Bounds Implied By Earnings and Asset Returns Data (2010)
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