Alternative specifications of human capital in production functions

• Luis Orea ^[1] ; Antonio Alvarez ^[1]
  1. [1] Universidad de Oviedo

     Universidad de Oviedo

     Oviedo, España

     
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 11, Nº. 4, 2022, págs. 172-179
• Idioma: inglés
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• Resumen

  • In this paper we argue that some empirical specifications may not be appropriate to estimate accurately the returns to human capital. In particular, we show that the inclusion in aggregate production functions of the ratio of skilled labor force over total labor force as a proxy for human capital may not be a good way to control for the heterogeneity of labor.