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Human capital and development accounting: New evidence from wage gains at migration

Author

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  • Hendricks, Lutz
  • Schoellman, Todd
Abstract
We reconsider the role for human capital in accounting for cross-country income differences. Our contribution is to bring to bear new data on the pre- and post- migration labor market experiences of immigrants to the U.S. Immigrants from poor countries experience wage gains that are only 40 percent of the GDP per worker gap, which implies that "country" accounts for 40 percent of income differences, while human capital accounts for 60 percent. Our approach handles selection by comparing the wage of the same individual in two different countries. We also provide evidence on and a correction for skill transfer.

Suggested Citation

  • Hendricks, Lutz & Schoellman, Todd, 2016. "Human capital and development accounting: New evidence from wage gains at migration," CFS Working Paper Series 557, Center for Financial Studies (CFS).
    • Handle: RePEc:zbw:cfswop:557
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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