Talent Utilization, a Source of Bias in Measuring TFP
Title: Talent Utilization, a Source of Bias in Measuring TFP
Author: ZOABI, Hosny
Publisher: European University Institute
Series/Report no.: EUI ECO; 2007/27
This paper analyzes a model of economic growth that explains differences in economic structure across countries. It highlights the interplay between productivity, talents utilization and entrepreneurship incentives. The paper has two main results. First, it argues that when measuring human capital we ignore one dimension, which is "talents utilization". It is suggested then that, in development accounting, human capital is inaccurately measured. Second, it shows that the magnitude of talents utilization increases with the level of development. Thus, the paper suggests that talents utilization ampliflies dif- ferences in productivity and contributes to the explanation of large observed international differences in per capita income.
Subject: Total factor productivity; talent utilization; human capital; factor accumulation; L16; O11; O14; O33; O47
Type of Access: openAccess