The Dagum model of human capital distribution

Abstract

In this paper the estimation of human capital distribution is obtained by means of Dagum model. The analysis refers to Italian households human capital, measured by resorting to Wold’s latent variables method, on the basis of micro data provided by the Bank of Italy’s survey of household income and wealth. The Dagum model allows both to achieve parameters with a specific economic significance and to reconcile economic theory with empirical evidence.