Human Capital Quality in the Brazilian States

Quality of human capital seems to be an extremely important feature to be disregarded in the evaluation of this factor impacts on income per worker (rate of growth and level). This is the reason for the emergence of many recent studies which includes some variable that takes into account the quality of human capital. The present study’s goal is to make an empirical analysis by using a human capital proxy that takes into account quantitative and qualitative aspects of this factor to measure with a higher level of accuracy the human capital direct impacts on Brazilian States output level in the years 1970, 1980, 1991, and 2000. The methods employed are Ordinary Least Squares (OLS), Iteratively Reweighted Least Squares (IRLS) and Panel Data regressions.