TY - JOUR AU - Hall,Robert E. AU - Jones,Charles I. TI - Why Do Some Countries Produce So Much More Output per Worker than Others? JF - National Bureau of Economic Research Working Paper Series VL - No. 6564 PY - 1999 Y2 - June 1999 UR - http://www.nber.org/papers/w6564 L1 - http://www.nber.org/papers/w6564.pdf N1 - Author contact info: Robert E. Hall Hoover Institution Stanford University Stanford, CA 94305-6010 Tel: 650/723-2215 E-Mail: rehall@gmail.com Charles I. Jones Graduate School of Business Stanford University 655 Knight Way Stanford, CA 94305-4800 Tel: 510/288-8650 Fax: 650/725-0468 E-Mail: chad.jones@stanford.edu AB - Output per worker varies enormously across countries. Why? On an accounting basis, our analysis shows that differences in physical capital and educational attainment can only partially explain the variation in output per worker we find a large amount of variation in the level of the Solow residual across countries. At a deeper level, we document that the differences in capital accumulation, productivity, and therefore output per worker are driven by differences in institutions and government policies, which we call social infrastructure. We treat social infrastructure as endogenous, determined historically by location and other factors captured in part by language. ER -