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Why do Some Countries Produce So Much More Output Per Worker than Others?

Hall, R. E., Jones, C. I.·1999·The Quarterly Journal of Economics

Abstract

Output per worker varies enormously across countries. Why? On an accounting basis our analysis shows that differences in physical capital and educational attainment can only partially explain the variation in output per worker—we find a large amount of variation in the level of the Solow residual across countries. At a deeper level, we document that the differences in capital accumulation, productivity, and therefore output per worker are driven by differences in institutions and government policies, which we call social infrastructure. We treat social infrastructure as endogenous, determined historically by location and other factors captured in part by language.

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Citations

Cites

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Metadata

Authors
Hall, R. E., & Jones, C. I.
Venue
The Quarterly Journal of Economics
Published
1999-02-01
Volume
114
Issue
1
Pages
83-116
ISSN
  • 0033-5533 (ISSN-L)
  • 1531-4650
OpenAlex
W3122705141
Cited by
7,879
References
6
FWCI
327.77
Type
journal article
Language
en
Open access
closed

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