Heterogeneity in the Production of Human Capital
نویسندگان
چکیده
Heterogeneity in the Production of Human Capital We derive a tractable nonlinear earnings function which we estimate separately for each individual in the NLSY79 data. These estimates yield five important parameters for each individual: three ability measures (two representing the ability to learn and one the ability to earn), a rate of skill depreciation, and a time discount rate. In addition, we obtain a population wide estimate of the rental rate of human capital. To illustrate heterogeneity in the production of human capital, we plot the distribution of these parameters along with NLSY79 reported AFQT scores. By utilizing these parameters, we are able to verify a number of heretofore untested theorems based on the life-cycle human capital model. In addition, we are able to show how these human capital production function parameters relate to cognitive ability, personality traits, and family background. Among our results, we find: Black-white differences in ability are smaller than those exhibited in standardized tests. Blacks have higher time discount and skill depreciation rates than whites. Individuals with higher time discount rates and greater rates of skill depreciation have fewer years of school. Individuals with both a high internal locus of control and self-esteem exhibit greater ability, lower skill depreciation, and smaller time discount rates. Individuals inclined towards depression have higher time discount rates. Agreeable, open, conscientious and extrovert individuals have a greater ability to learn but not necessarily a greater ability to earn. Neurotic individuals have a lower ability to learn. Higher parental education is associated with a greater ability to learn, lower skill depreciation, and a smaller time discount rate. Educational stimuli, such as growing up in a household that subscribed to magazines, are associated with higher ability. Conversely, growing up poor is associated with lower ability. JEL Classification: J24, J29, J31, J39
منابع مشابه
The Impact of Human Capital on FDI with New Evidence from Bootstrap Panel Granger Causality Analysis
T his study evaluates the causality relationship between human capital and foreign direct investment inflow in twenty-six OIC (the Organization of Islamic Cooperation) countries over the period 1970–2014. We employed the panel Granger non-causality testing approach of Kònya (2006) that is based on seemingly unrelated regression (SUR) systems, and Wald tests with country specific boot...
متن کاملThe Impact of International Migration on the Economy with the Assumption of Labor Heterogeneity
T his study investigated the effect of international labor migration on Iran’s economy using a neo-classical growth model with the assumption of labor heterogeneity within the framework of dynamic stochastic general equilibrium model. After solving the model, the obtained equations were linearized and different values were assigned to the parameters according to Iran’s economy inform...
متن کاملEstimating Elasticity of Substitution between Land and Capital in a Median City (City of Dorud as a Case Study)
Some unique characteristics of housing goods such as spatial dependency, heterogeneity and durability make housing market analysis different from ordinary goods. However principles in ordinary goods market such as profit maximization are used by developer in housing market. one of the housing market characteristic is that land as a most important input for housing services production has low de...
متن کاملبررسی همبستگی سرمایۀ اجتماعی و رفاه تولیدکنندگان روستایی و عشایری در استان فارس
Intordaetion: The differences in various geographical areas can no longer be explained by the differences in traditional inputs. There is growing evidence that social capital stands for the ability of producers to get benefit, by virtue of membership in social networks or other social structures in economic outcome (Portes, 1998 and Okunmadewa, et al. 2005 cited in Yusuf, 2008). Thus there ...
متن کاملبررسی همبستگی سرمایۀ اجتماعی و رفاه تولیدکنندگان روستایی و عشایری در استان فارس
Intordaetion: The differences in various geographical areas can no longer be explained by the differences in traditional inputs. There is growing evidence that social capital stands for the ability of producers to get benefit, by virtue of membership in social networks or other social structures in economic outcome (Portes, 1998 and Okunmadewa, et al. 2005 cited in Yusuf, 2008). Thus there ...
متن کاملAnalysis of effecting renewable energy consumption on environment according to role of human capital
The limitation of non-renewable resources and the increasing of environmental pollution caused by the accumulative consumption of fossil fuels indicate the necessity of paying attention to renewable sources. The present study analyzes the factors affecting on the quality of the environment with emphasis on the consumption of renewable energy and human capital such as education in developing and...
متن کامل