Daron Acemo?lu|Francisco Gallego|James A. Robinson
Institutions, Human Capital, and Development
Canadian Institute for Advanced Research|Harvard University|National Bureau of Economic Research|Pontificia Universidad Católica de Chile|Harvard University|National Bureau of Economic Research|Canadian Institute for Advanced Research|Harvard University|National Bureau of Economic Research
article revisit relationship among institutions human capital development argue empirical models treat institutions human capital exogenous misspecified usual omitted variable bias problems differential measurement error variables misspecification root large returns human capital four five times greater implied micro mincerian estimates found previous literature using crosscountry crossregional regressions show focus historically determined differences human capital control effect institutions impact institutions longrun development robust whereas estimates effect human capital much diminished become consistent micro estimates using historical crosscountry regression evidence also show support view differences human capital endowments early european colonists major factor subsequent institutional development former colonies