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Human Capital Policy - Klenow Apr 2026
Research in The Allocation of Talent and U.S. Economic Growth suggests that 20% to 40% of U.S. economic growth from 1960–2010 resulted from women and Black men entering high-skilled occupations, representing a better allocation of innate talent.
The authors investigate whether high returns to schooling for disadvantaged youth are driven by that prevent them from financing their own education. They evaluate how expanding student loans or school subsidies might increase college enrollment and improve the quality of colleges attended by these groups. Human Capital Policy - Klenow
Klenow's work on Innovation and Human Capital Policy argues for "supply-side" policies, such as increasing STEM exposure for talented but disadvantaged youth, to boost the number of inventors and drive long-term growth. Research in The Allocation of Talent and U
In the paper , Peter Klenow and James Heckman examine policies aimed at increasing formal schooling and improving access to higher education, particularly for children from low-income families. The authors investigate whether high returns to schooling
Key themes in Klenow's broader research on human capital include:
In his analysis of whether schooling causes growth , Klenow notes that while highly correlated, schooling itself explains less than one-third of the empirical relationship, suggesting growth may actually drive the demand for education. Human Capital Policy - James J. Heckman and Peter J. Klenow
