Abstract
Human capital differences across countries can appear large or small depending on measurement methods. This Reply clarifies key assumptions and conceptual distinctions across accounting approaches. Accounting-based arguments for small human capital differences are difficult to sustain. By contrast, large human capital differences are theoretically and empirically coherent. Non-accounting arguments against large human capital variation are examined and their weaknesses pinpointed. This Reply also suggests a fruitful way forward for this literature, providing a natural conception of human capital that integrates literatures on ideas and institutions with the accounting of Jones (2014).
Original language | English (US) |
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Pages (from-to) | 1175-1195 |
Number of pages | 21 |
Journal | American Economic Review |
Volume | 109 |
Issue number | 3 |
DOIs | |
State | Published - Mar 2019 |
ASJC Scopus subject areas
- Economics and Econometrics