Human Capital in Cities (News and Research 178)
An interesting application of human capital be combining education and income through the Mincer equation to understand the development of cities. It moves us beyond population as the only measure of shrinking cities. By proposing the alternative indicator, average human capital (HC), to investigate city vitality, the improved measurement relaxes the traditional assumption that HC has a linear relation with schooling and combine inputs with outputs of HC by considering the heterogeneity of returns to schooling of each city. A comprehensive dataset calculating average HC level for each city in the year of 2000, 2005 and 2010 was constructed. The results suggest that city shrinkage might not be so serious as emphasized in previous literature based on population decline. But average HC across Chinese cities has been diverging since 2005.
Sultan Qaboos: Architect of modern Oman – Under the Sultan, Oman went from 3 schools to universal enrollment in a generation