Book•
Schooling, Experience, and Earnings
01 May 1974-
TL;DR: In this article, the authors analyzed the distribution of worker earnings across workers and over the working age as consequences of differential investments in human capital and developed the human capital earnings function, an econometric tool for assessing rates of return and other investment parameters.
Abstract: Analyzes the distribution of worker earnings across workers and over the working age as consequences of differential investments in human capital. The study also develops the human capital earnings function, an econometric tool for assessing rates of return and other investment parameters.
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TL;DR: The authors analyzes the role of wealth distribution in macroeconomics through investment in human capital and shows that the initial distribution of wealth affects aggregate output and investment both in the short and in the long run, as there are multiple steady states.
Abstract: This paper analyzes the role of wealth distribution in macroeconomics through investment in human capital. It is shown that in the presence of credit markets' imperfections and indivisibilities in investment in human capital, the initial distribution of wealth affects aggregate output and investment both in the short and in the long run, as there are multiple steady states. This paper therefore provides an additional explanation for the persistent differences in per-capita output across countries. Furthermore, the paper shows that cross-country differences in macroeconomic adjustment to aggregate shocks can be attributed, among other factors, to differences in wealth and income distribution across countries.
4,062 citations
TL;DR: In this paper, the authors examined the developmental process of nascent entrepreneurs for 18 months and found that bridging and bonding social capital, consisting of both strong and weak ties, was a robust predictor for nascent entrepreneurs and advancing through the start-up process.
3,777 citations
Book Chapter•
01 May 2003TL;DR: In this article, the authors examined the developmental process of nascent entrepreneurs for 18 months and found that bridging and bonding social capital, consisting of both strong and weak ties, was a robust predictor for nascent entrepreneurs and advancing through the start-up process.
Abstract: This study examines nascent entrepreneurship by comparing individuals engaged in nascent activities (n=380) with a control group (n=608), after screening a sample from the general population (n=30,427). The study then follows the developmental process of nascent entrepreneurs for 18 months. Bridging and bonding social capital, consisting of both strong and weak ties, was a robust predictor for nascent entrepreneurs, as well as for advancing through the start-up process. With regard to outcomes like first sale or showing a profit, only one aspect of social capital, viz. being a member of a business network, had a statistically significant positive effect. The study supports human capital in predicting entry into nascent entrepreneurship, but only weakly for carrying the start-up process towards successful completion.
3,414 citations
Cites background from "Schooling, Experience, and Earnings..."
...Human capital theory maintains that knowledge provides individuals with increases in their cognitive abilities, leading to more productive and efficient potential activity (Schultz, 1959; Becker, 1964; Mincer, 1974 )....
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TL;DR: In this paper, the authors discuss methodological issues surrounding those estimates and confirm that primary education continues to be the number one investment priority in developing countries, and also show that educating females is marginally more profitable than educating males, and that the academic secondary school curriculum is a better investment than the technical/vocational tract.
3,182 citations
Posted Content•
TL;DR: Beck, Levine, and Loayza as mentioned in this paper evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources- total factor productivity growth, physical capital accumulation, and private saving.
Abstract: Development of the banking sector exerts a large, causal impact on total factor productivity growth, which in turn causes GDP to grow. Whether banking development has a long-run effect on capital growth or private saving remains to be seen. Beck, Levine, and Loayza evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources- total factor productivity growth, physical capital accumulation, and private saving. They use (1) a pure cross-country instrumental variable estimator to extract the exogenous component of banking development and (2) a new panel technique that controls for country-specific effects and endogeneity. They find that: - Banks do exert a large, causal impact on total factor productivity growth, which feeds through to overall GDP growth. - The long-run links between banking development and both capital growth and private savings are more tenuous. This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to understand the links between the financial system and economic growth.
3,174 citations
Cites background from "Schooling, Experience, and Earnings..."
...…capital augmented labor as follows: i E iH e Li= φ( ) (6) The function φ(E) reflects the efficiency of a unit of labor with E years of schooling relative to one with no schooling (φ(0)=0) and the derivative φ’(E) is the return to schooling estimated in a Mincerian wage regression [Mincer 1974]....
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...Also, the three productivity growth measures have cross correlations of at least 94%....
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