Human Capital and Aggregate Income Differences in Mexico

We study the relationship between differences in human capital and differences in product per worker of the federal entities of Mexico. We consider both quantity and quality of education in human capital formation, and use two methods for aggregating these two dimensions of education: a multiplicati...

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Main Authors: Valero Gil, Jorge Noel, Valero, Magali
Format: Article
Language:English
Published: Taylor & Francis Group 2021
Subjects:
Online Access:http://eprints.uanl.mx/22828/7/22828.pdf
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author Valero Gil, Jorge Noel
Valero, Magali
author_facet Valero Gil, Jorge Noel
Valero, Magali
author_sort Valero Gil, Jorge Noel
collection Repositorio Institucional
description We study the relationship between differences in human capital and differences in product per worker of the federal entities of Mexico. We consider both quantity and quality of education in human capital formation, and use two methods for aggregating these two dimensions of education: a multiplicative and an additive model. Our measures of quality of education are constructed using the OECD’s Program for International Student Assessment (PISA) math achievement test scores in the additive model, and using the differences in the returns to education of the states in the multiplicative model. Our results are consistent to different methodologies and data sources. We find that variations in human capital explain upwards of 40% of the variations in state GDP per worker. Our results indicate that Mexican states should place more emphasis both in the quantity as well as quality of schooling, in order to improve the living standards of their population.
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spelling eprints-228282022-09-02T17:23:11Z http://eprints.uanl.mx/22828/ Human Capital and Aggregate Income Differences in Mexico Valero Gil, Jorge Noel Valero, Magali HD Industrias, Economía Laboral y Agraria We study the relationship between differences in human capital and differences in product per worker of the federal entities of Mexico. We consider both quantity and quality of education in human capital formation, and use two methods for aggregating these two dimensions of education: a multiplicative and an additive model. Our measures of quality of education are constructed using the OECD’s Program for International Student Assessment (PISA) math achievement test scores in the additive model, and using the differences in the returns to education of the states in the multiplicative model. Our results are consistent to different methodologies and data sources. We find that variations in human capital explain upwards of 40% of the variations in state GDP per worker. Our results indicate that Mexican states should place more emphasis both in the quantity as well as quality of schooling, in order to improve the living standards of their population. Taylor & Francis Group 2021-09-30 Article PeerReviewed text en cc_by_nc_nd http://eprints.uanl.mx/22828/7/22828.pdf http://eprints.uanl.mx/22828/7.haspreviewThumbnailVersion/22828.pdf Valero Gil, Jorge Noel y Valero, Magali (2021) Human Capital and Aggregate Income Differences in Mexico. Applied Economics. ISSN 0003-6846 (Por publicarse) https://www.tandfonline.com/doi/abs/10.1080/00036846.2021.1980197 https://doi.org/10.1080/00036846.2021.1980197
spellingShingle HD Industrias, Economía Laboral y Agraria
Valero Gil, Jorge Noel
Valero, Magali
Human Capital and Aggregate Income Differences in Mexico
thumbnail https://rediab.uanl.mx/themes/sandal5/images/online.png
title Human Capital and Aggregate Income Differences in Mexico
title_full Human Capital and Aggregate Income Differences in Mexico
title_fullStr Human Capital and Aggregate Income Differences in Mexico
title_full_unstemmed Human Capital and Aggregate Income Differences in Mexico
title_short Human Capital and Aggregate Income Differences in Mexico
title_sort human capital and aggregate income differences in mexico
topic HD Industrias, Economía Laboral y Agraria
url http://eprints.uanl.mx/22828/7/22828.pdf
work_keys_str_mv AT valerogiljorgenoel humancapitalandaggregateincomedifferencesinmexico
AT valeromagali humancapitalandaggregateincomedifferencesinmexico