
Contents
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12 Toward the Development of Sectoral Financial Positions and Flows in a From-Whom-to-Whom Framework
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15.1 Introduction 15.1 Introduction
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15.2. Methodology 15.2. Methodology
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15.2.1 The Lifetime Income Approach 15.2.1 The Lifetime Income Approach
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15.2.2 Comparisons with the SNA Measures of Economic Capital 15.2.2 Comparisons with the SNA Measures of Economic Capital
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15.2.3 Scope of the Project 15.2.3 Scope of the Project
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15.2.4 Estimation Methods 15.2.4 Estimation Methods
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Value of Human Capital Value of Human Capital
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Volume of Human Capital Volume of Human Capital
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15.3 Database Construction 15.3 Database Construction
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15.3.1 Survival Rates 15.3.1 Survival Rates
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15.3.2 Educational Attainment 15.3.2 Educational Attainment
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15.3.3 Employment Rates 15.3.3 Employment Rates
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15.3.4 School Enrollment Rates 15.3.4 School Enrollment Rates
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15.3.5 Annual Earnings 15.3.5 Annual Earnings
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15.4 Empirical Results 15.4 Empirical Results
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15.4.1 Employment Rates and Survival Rates 15.4.1 Employment Rates and Survival Rates
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15.4.2 Annual Incomes and Lifetime Incomes 15.4.2 Annual Incomes and Lifetime Incomes
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15.4.3 Value of Human Capital 15.4.3 Value of Human Capital
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Level Level
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Distribution Distribution
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15.4.4 Volume Measures of the Stock of Human Capital 15.4.4 Volume Measures of the Stock of Human Capital
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Spatial Volume Index Spatial Volume Index
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Temporal Volume Index Temporal Volume Index
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15.4.5 Sensitivity Analysis 15.4.5 Sensitivity Analysis
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15.5 Conclusions and Future Plan 15.5 Conclusions and Future Plan
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Appendix A Methodological Assumptions and Relevant Equations Used for Estimating Lifetime Income Appendix A Methodological Assumptions and Relevant Equations Used for Estimating Lifetime Income
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Appendix B Classification of Educational Levels in ISCED 97 Appendix B Classification of Educational Levels in ISCED 97
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Appendix C Transition Pattern in ISCED 97 Appendix C Transition Pattern in ISCED 97
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References References
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15 Measuring the Stock of Human Capital for International and Intertemporal Comparisons
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Published:October 2014
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Abstract
This paper summarizes the outcomes of the OECD human capital project. In so doing, it discusses the feasibility of applying the lifetime income approach to measuring human capital for comparative analysis, both across countries and over time. It also examines the feasibility of applying the methodology to the categorical data (i.e. by 5-year or 10-year age group) that are available within the OECD statistics system, rather than to data by single year of age required by the original Jorgenson-Fraumeni methodology. The results in this paper indicate that the estimated value of human capital is substantially larger than that of conventional produced capital. Ratios of human capital to GDP are in a range from around eight to over ten across countries, in line with those reported in a number of national studies. The distributions of human capital by age, gender, and education reveal a few important conclusions. While higher educational attainment contributed positively to the change of human capital per capita, this is not always sufficient to offset the negative effect of population ageing; as a result, the volume of human capital per capita appeared to have declined in some countries over the observed period.
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