1. Why do some countries produce so much more output per worker than others?
- Author:
- Camelia Minoiu and Emmanuel Pikoulakis
- Publication Date:
- 10-2006
- Content Type:
- Working Paper
- Institution:
- Institute for Social and Economic Research and Policy at Columbia University
- Abstract:
- To explain differences in output per worker across countries, we test for the workings of a learning-by-doing hypothesis and the hypo thesis that the effectiveness of human capital depends on the laws and institutions that promote workplace practices that allow skills to develop. The quality of laws and institutions in the workplace is measured by an index of economic security (ESI). We find that ESI is a good proxy for human capital whilst educational attainment is not. We also find that countries with high ESI use more effectively the skills of the workforce and are better at exploiting profitable opportunities in capital markets.
- Topic:
- Development, Economics, Industrial Policy, International Trade and Finance, Markets, and Political Economy