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Christiano Coelho and Pedro Gesteira
''Measuring the effect of health on cross-country income variability''
( 2022, Vol. 42 No.3 )
We construct a human capital series adjusted for measures of health based on a new dataset from World Bank for a large sample of countries. We show that the health-adjusted series of human capital increases the explanatory power of factor inputs by seven percentage points in explaining cross-country income variability, which represents 35% of the variation generated by human capital. This result shows the importance of measures of health in human capital. It is robust to changes in the sample of countries and to how we measure the schooling component of human capital.
JEL: O1 - Economic Development: General
I1 - Health: General
Manuscript Received : Mar 16 2022 Manuscript Accepted : Sep 30 2022

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