Knowledge Capital and Aggregate Income Differences: Development Accounting for US States\

Eric Hanushek, Jens Ruhose () and Ludger Wößmann
Authors registered in the RePEc Author Service: Ludger Woessmann

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Improvement in human capital is often presumed to be important for state economic development, but little research links better education to state incomes. We develop detailed measures of worker skills in each state that incorporate cognitive skills from state-and-country-of-origin achievement tests. These new measures of knowledge capital permit development accounting analyses calibrated with standard production parameters. Differences in knowledge capital account for 20-30 percent of the state variation in per capita GDP, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses. These estimates support school improvement as a strategy for state economic development.

Date: 2017
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Citations: View citations in EconPapers (32)

Published in American Economic Journal-Macroeconomics 4 9(2017): pp. 184-224

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Related works:
Journal Article: Knowledge Capital and Aggregate Income Differences: Development Accounting for US States (2017)
Working Paper: Knowledge Capital and Aggregate Income Differences: Development Accounting for U.S. States (2016)
Working Paper: Knowledge Capital and Aggregate Income Differences: Development Accounting for U.S. States (2016)
Working Paper: Knowledge Capital and Aggregate Income Differences: Development Accounting for U.S. States (2015)
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