The Rate of Return to Aging: A Capital Stock Accounting

Not until recently, that measurement of the stock human capital attracted the attention of scholars and researchers in the US and the EU. In the 21st century, estimates of the stock of human capital for the US and several EU countries were developed by the OECD human capital project. Other estimates were also reported for the US. Thanks to these efforts, it is possible to shed some light on an old-new contention that the elderly population absorbs more of society’s resources than they contribute, hence imposing an ever rising burden on younger generation. Based on the recent estimates of the stock of human capital, the hypothesis advanced in the paper is that such a claim needs to be revisited in light of the very significant familial and intergenerational transfers.