The contribution of work experience and education to human capital accumulation and economic development might be equally important

Jedwab, Remi, Paul Romer, Asif M. Islam, and Roberto Samaniego. 2023. "Human Capital Accumulation at Work: Estimates for the World and Implications for Development." American Economic Journal: Macroeconomics, 15 (3): 191-223. DOI: 10.1257/mac.20210002

Abstract: We (i) study wage-experience profiles and obtain measures of returns to potential work experience using data from about 24 million individuals in 1,084 surveys and census samples across 145 countries; (ii) show that workers in developed countries accumulate twice as much human capital at work as those in developing countries; (iii) use a simple accounting framework to find that the contribution of work experience and education to human capital accumulation and economic development might be equally important; and (iv) employ panel regressions to investigate how changes in the returns over time correlate with several factors such as economic recessions, transitions, and human capital stocks.