The baseline specification focuses on the level of such variable (as in recent works on inequality and growth, see e.g. Halter et al. The data are sourced from the latest (2013) version of the widely used Barro and Lee dataset.37 In general, the quality of available cross country data on human capital has been shown to be relatively poor (De la Fuente and Domenech, 2013). The baseline specification does not, on the other hand, account for the last term in A3.7, cumulating population growth, capital depreciation and technological progress (n+g+S). The paper focuses on a simplified specification for several reasons.