allow for them, and they are huge flows. Human depreciation is depreciation of the larger factor. And self-invested work includes more than learning. Ben-Porath showed, as we will see, that it equals all growth in human capital not explained by inflows of nurture and schooling less outflows in human Chapter

ds were taken as representative of a realistically balanced portfolio. Solving the Age-Wage Puzzle I will now try to solve a feature that troubled Ben-Porath and has troubled many economists since. I call it the age-wage puzzle. Age-wage profiles are published reports comparing pay earned by all working ag

. This would prove the most straightforward strategy to exhaust and replace all total capital by the deadline exactly. This is just as in my adjusted Ben-Porath model with the addition of the specified deadline. Here as there, I describe adults collectively and the young collectively. | will not attempt to m

=F =Y,gross—p,, (A3.7) at the scale of the total capital of the individual or any set of individuals. This fact will prove helpful in adjusting the Ben-Porath model and in next generation theory. It should be borne in mind that transfer out and transfer in are both implicitly defined as net of plowback in