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The Allocation of Talent and U.S. Economic Growth

In 1960, 94 percent of doctors were white men, as were 96 percent of lawyers and 86 percent of managers. By 2008, these numbers had fallen to 63, 61, and 57 percent respectively. Skilled occupations have become more equally distributed across race and gender, as have earnings within occupations. The result is arguably better allocation of talent and human capital investment, potentially accounting for 15 to 20 percent of U.S. economic growth over the last fifty years.

Author(s)
Pete Klenow
Publication Date
July, 2012