Human Capital Quality and Aggregate Income Differences: Development Accounting for U.S. States
Eric Hanushek (),
Jens Ruhose () and
Ludger Woessmann ()
No 15112, Economics Working Papers from Hoover Institution, Stanford University
Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted measures of human capital can explain within-country income differences. We develop detailed measures of state human capital based on school attainment from census micro data and on cognitive skills from state- and country-of-origin achievement tests. Partitioning current state workforces into state locals, interstate migrants, and immigrants, we adjust achievement scores for selective migration. We use the new human capital measures in development accounting analyses calibrated with standard production parameters. We find that differences in human capital account for 20-35 percent of the current variation in per-capita GDP among states, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses.
JEL-codes: I25 J24 J47 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
http://www.hoover.org/sites/default/files/research ... ng_for_us_states.pdf
Working Paper: Human Capital Quality and Aggregate Income Differences: Development Accounting for U.S. States (2015)
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:hoo:wpaper:15112
Access Statistics for this paper
More papers in Economics Working Papers from Hoover Institution, Stanford University Contact information at EDIRC.
Bibliographic data for series maintained by Webmaster ().