Human Capital Management White Papers
Agriculture, Human Capital Quality, and Cross-Country Income Differences
Overview Do differences between agriculture and nonagriculture matter for understanding the cross-country income dispersion? This paper shows that they do. It is found that by abstracting from technological differences across sectors, particularly in the use of land, standard Solow residuals underestimate productivity differences across countries. Specifically, the cross-country dispersion of both agricultural and nonagricultural TFPs is found to be larger than the dispersion of standard Solow residuals. The paper also shows that the contribution of TFP and factors of production to cross-country income variance depends critically on the explanation of the wage gap between agriculture and nonagriculture.
| Publisher | University of Pittsburgh | File Format | PDF, requires Acrobat Rdr 5 |
|---|---|---|---|
| Date Published | April 2005 | Downloads | 3 |
| Format | White Papers | ||
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