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More on the estimation of the human capital depreciation rate

María Arrazola and Jose de Hevia

Applied Economics Letters, 2004, vol. 11, issue 3, 145-148

Abstract: This study formulates an alternative empirical model to that of Groot (Applied Economics Letters, 5, 535-8, 1998) to estimate the rate of depreciation of human capital, in which the post-schooling investment and the difference between the potential and the observed earnings of the individuals are taken into account. As an illustration, the model has been estimated for a sample of Spanish men and women. The results show depreciation rates of human capital of around 1-1.5% per year.

Date: 2004
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DOI: 10.1080/1350485042000203742

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