ABSTRACT
The models of Hall and Jones (1999) and Caselli and Coleman (2006) both focus on the role of technology in understanding differences in incomes across countries, and both use macro data. To address the question as to how important is technology in understanding differences of incomes within countries, we require micro data. One way of tackling that question is to consider how factors other than education impact on earnings. In Section 13.5 we introduce earnings data from urban Ghana and Tanzania for this purpose. In the final section we draw out the differences and complementarities across these methods of conducting policy analysis in developing countries.
