Talent Utilization, a Source of Bias in Measuring TFP

This paper analyzes a model of economic growth that explains di®erences in economic structure across countries. It highlights the interplay between productivity, talents utilization and entrepreneurship incentives. The paper has two main results. First, it argues that when measuring human capital we ignore one dimension, which is \talents utilization". It is suggested then that, in development accounting, human capital is inaccurately measured. Second, it shows that the magnitude of talents utilization increases with the level of development. Thus, the paper suggests that talents utilization ampli¯es dif- ferences in productivity and contributes to the explanation of large observed international di®erences in per capita income. ¤


Issue Date:
Nov 27 2006
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/275735
Language:
English
Total Pages:
14




 Record created 2018-08-09, last modified 2020-10-28

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