While human capital is a strong predictor of economic development today, its importance for the Industrial Revolution … has typically been assessed as minor. To resolve this puzzling contrast, we differentiate average human capital (literacy … firm survey from the 1840s, we shed light on the mechanism: upper-tail knowledge raised productivity in innovative …

percent of the employment growth effect of college graduates is due to enhanced productivity growth, the rest being caused by … growth in the quality of life. This finding contrasts with the common argument that human capital generates employment growth … in urban areas solely through changes in productivity …

indicate a substantial role for human capital accumulation in raising productivity, in contrast to the neoclassical focus on … capital accumulation are consistent with the predictions of the neoclassical growth model. At the same time, the estimates … physical capital investment …

A unified growth theory is developed that accounts for the roughly constant living standards displayed by world … economies prior to 1800 as well as the growing living standards exhibited by modern industrial economies. Our theory also … sustained growth. This transition is inevitable given positive rates of total factor productivity growth. We use a standard …

We examine productivity growth since World War II in the five leading research economies: West Germany, France, the … United Kingdom, Japan, and the United States. Available data on the capital-output ratio suggest that these countries grew as … they did because of their ability to adopt more productive technologies, not because of capital deepening per se. We …

the possibility that capital-embodied technical change may be a significant source of total factor productivity growth … suggest that as much as 20 percent of the total factor productivity in growth U.S. manufacturing industry over the period 1949 …

We introduce a growth model of technology diffusion and endogenous Total Factor Productivity (TFP) levels both at the … adoption, like adoption rates, capital to output ratios, and output ratios. Secondly, we estimate our model using a broad range … disparities in sectoral productivity levels as well as aggregate TFP that can be attributed to the differences in the range of …

of substitution between capital and labor less than one. This is inconsistent with the Uzawa Growth Theorem. We extend … Uzawa's theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle …. However, balanced growth is possible if schooling is endogenous and capital is more complementary with schooling than with raw …

understanding the movements in hours and productivity. Expensed investments are expenditures that increase future profits but, by … national accounting rules, are treated as operating expenses rather than capital expenditures. Sweat investments are … uncompensated hours in a business made with the expectation of realizing capital gains when the business goes public or is sold …