What Does Human Capital Do? A Review of Goldin and Katz's <italic>The Race between Education and Technology</italic>

G and Katz’s magnum opus, The Race between Education and Technology, rivals Becker’s Human Capital in ambition and potential influence over the economics profession and beyond. Becker formulated a new and empirically fruitful framework for economists and policymakers to think about skills—how they are used, how markets price them, and how and why workers and firms invest in them. The way most economists currently think about the supply and demand for human capital is still largely shaped by Becker’s insights. Goldin and Katz’s book promises to be equally transformative. It is erudite, well researched, well written, and interesting. Most importantly, it is a coherent and compelling account of how human capital has been the defining factor for the American century—mostly for America, but also for much of the industrialized world. What Does Human Capital Do? A Review of Goldin and Katz’s The Race between Education and Technology