This paper examines whether the Solow growth model is consistent with the international
variation in the standard of living. It shows that an augmented Solow model that
includes accumulation of human as well as physical capital provides an excellent
description of the cross-country data. The paper also examines the implications of
the Solow model for convergence in standards of living, that is, for whether poor
countries tend to grow faster than rich countries. The evidence indicates that, holding
population growth and capital accumulation constant, countries converge at about
the rate the augmented Solow model predicts.