[PEN-L:11009] Re: K/Y ratio

[Doug Henwood <dhenwood@xxxxxxxxx>]

PHILLPS@xxxxxxxxxxxxxxxx wrote:

>Could not there be an additional explanation in the so-called
>Leontieff paradox  -- that the US exports labour intensive goods
>because the labour embodies a great deal of 'human capital'.  That
>is, is it not possible that when human capital is added to physical
>capital, the K/Y ratio would rise both absolutely and relatively.
>This would also imply that capital is exploiting the workers
>investment in human capital as well.

Do US workers embody that much more human capital than Japanese and/or
Western Europeans? If so, why are our wages so damn low?

Doug