Productivity and Selection of Human Capital with Machine Learning

S-Tier
Journal: American Economic Review
Year: 2016
Volume: 106
Issue: 5
Pages: 124-27

Authors (7)

Aaron Chalfin (not in RePEc) Oren Danieli (not in RePEc) Andrew Hillis (not in RePEc) Zubin Jelveh (not in RePEc) Michael Luca (not in RePEc) Jens Ludwig (University of Chicago) Sendhil Mullainathan (University of Chicago)

Score contribution per author:

1.149 = (α=2.01 / 7 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Economists have become increasingly interested in studying the nature of production functions in social policy applications, with the goal of improving productivity. Traditionally models have assumed workers are homogenous inputs. However, in practice, substantial variability in productivity means the marginal productivity of labor depends substantially on which new workers are hired--which requires not an estimate of a causal effect, but rather a prediction. We demonstrate that there can be large social welfare gains from using machine learning tools to predict worker productivity, using data from two important applications - police hiring and teacher tenure decisions.

Technical Details

RePEc Handle
repec:aea:aecrev:v:106:y:2016:i:5:p:124-27
Journal Field
General
Author Count
7
Added to Database
2026-01-25