scholarly journals HUMAN CAPITAL, AGGREGATION, AND GROWTH

2010 ◽  
Vol 14 (2) ◽  
pp. 189-211 ◽  
Author(s):  
Jakub Growiec
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Knowledge Spillovers ◽  
Human Capital Accumulation ◽  
Education Spending ◽  
Cross Sectional ◽  
Individual Level ◽  
Long Run ◽  
Mincer Equation ◽  
The Individual

Human capital is embodied in people of different generations whose lifetimes are finite. We show that the finiteness of people's lives precludes human capital accumulation from driving long-run aggregate economic growth unless sufficiently strong externalities from aggregate human capital are introduced. Two possible channels for carrying forward such externalities are (i) knowledge spillovers and (ii) public education spending. Our findings shed new light on the foundations of the Uzawa–Lucas growth model. We also show that the cross-sectional Mincer equation, generated by a linear human capital accumulation equation at the individual level, does not carry forward to aggregate data.

Human capital accumulation, income distribution, and economic growth: a demand-led analytical framework

2021 ◽  
Vol 9 (3) ◽  
pp. 319-336
Author(s):  
Gilberto Tadeu Lima ◽  
Laura Carvalho ◽  
Gustavo Pereira Serra
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Analytical Framework ◽  
Output Growth ◽  
Human Capital Accumulation ◽  
Capital Utilization ◽  
Tax Rate ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

This paper incorporates human capital accumulation through provision of universal public education by a balanced-budget government to a demand-driven analytical framework of functional distribution and growth of income. Human capital accumulation positively impacts on workers’ productivity in production and their bargaining power in wage negotiations. In the long-run equilibrium, a rise in the tax rate (which also denotes the share of output spent in human capital formation) lowers the pre- and after-tax wage share and physical capital utilization, and thus raises (lowers) the output growth rate when the latter is profit-led (wage-led). The impact of a higher tax rate on the employment rate (which also measures human capital utilization) in the long-run equilibrium is negative (ambiguous) when output growth is wage-led (profit-led). In any case, the supply of higher-skilled workers does not automatically create its own demand.

Empirical Study on the Correlations of Environmental Pollution, Human Capital, and Economic Growth

2013 ◽  
pp. 128-137 ◽  
Author(s):  
Li Guangming ◽  
An Zhaofeng
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Human Capital ◽  
Empirical Study ◽  
Environmental Pollution ◽  
Capital Accumulation ◽  
Pollutant Emission ◽  
Human Capital Accumulation ◽  
The Individual ◽  
Protection Authority

Based on 1990-2007 data in Guangdong China, this chapter studies the correlation of environmental pollution, human capital, and economic growth. The results show that Guangdong’s economic growth deteriorates the environmental quality. Highly skilled human capital is one of the main engines of the economic growth and the growth promotes the human capital’s accumulation. Upgrading the human capital helps controlling pollutant emission and environmental pollution depresses the human capital accumulation. Furthermore, the authors hope that understanding the individual relationships between environmental pollution and human capital or economic growth will help the environmental protection authority or governments in China to make more effective and efficient regulations or policies to coordinate the country’s sustainable development.

scholarly journals Human Capital and Regional Economic Growth in Russia

2021 ◽  
Vol 17 (2) ◽  
pp. 57-80
Author(s):  
Boris Alekhin
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Capital Accumulation ◽  
Positive Impact ◽  
Regional Economic Growth ◽  
Human Capital Accumulation ◽  
Regional Economic ◽  
Long Run ◽  
Per Capita

This study examines the contribution of human capital accumulation to regional economic growth using panel data for 82 subjects of the Russian Federation over 2002–2019. This paper aims to test the hypothesis that in the long-run equilibrium there exists a connection between economic growth and human capital accumulation in the regions of Russia. From the point of view of econometrics, it would mean that we should refute the hypothesis that there is no cointegration of time series describing the aforementioned variables. General theoretical framework was drawn from the neoclassical growth theory, and panel data econometrics suggested the appropriate empirical methodology. Pooled mean group and fully modified least squares estimators were applied to an autoregressive distributed lags model based on the Solow model. The results indicate that accumulation of human capital has a positive and statistically significant long-term impact on the rate of growth of per capita income and that these variables are cointegrated. Such calculations allow us to make the following conclusions: per capita GRP is cointegrated with physical and human capital on the regional level. The cointegrating equation ‘explained’ more than 90% of per capita GRP variance. Human capital accumulation had a significant positive impact on per capita GRP growth in the long run; such impact exceeded the impact of physical capital accumulation. The positive impact of human capital accumulation on per capita GRP growth surpassed the negative elasticity of growth GRP by the amount of resource excluded from the real sector to provide support to students and maintain the regional education system. The paces at which regional economies were heading towards the steady state differed which is an evidence that there exist an incredible manifold of ways and means for regions to adjust to disbalancies

scholarly journals Domestic Resource Mobilization and Human Capital Development in Sub- Saharan Africa

2021 ◽  
Vol 27 (4) ◽  
pp. 504-533
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Resource Mobilization ◽  
Human Capital Accumulation ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Two Measures ◽  
Capital Development ◽  
Domestic Resource

This study investigates the nexus between domestic resource mobilization using aggregated and disaggregated taxes, and human capital accumulation as measured by the index of human capital and total factor productivity. The study explores panel Autoregressive Distributed Lag. We further explore the linear and nonlinear effects of taxes on human capital accumulation. The results from the scatterplots show that taxes at aggregate and disaggregated levels positively correlated with the two measures of human capital. On the linear analysis, the impact of aggregated and disaggregated taxes is largely negative under the index of human capital but largely positive under the second measure in the short-run. However, the long-run results indicate that aggregate and disaggregated taxes significantly amplify human capital accumulation. On nonlinearity, there is no presence of human capital laffer curve (HCLC) in the short-run under the two measures of human capital. However, there is presence of HCLC in the long-run. The net effects results show that some taxes (such as indirect taxes, taxes on goods and services) are distortionary in improving the level of human capital development while some taxes (such as total tax, direct tax, taxes on income, profit, and gains) can distort human capital development in the SSA region.

Effectiveness versus Efficiency: Growth-Accelerating Policies in a Model of Growth without Scale Effects

2006 ◽  
Vol 7 (3) ◽  
pp. 297-316 ◽  
Author(s):  
Bettina Büttner
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Scale Effects ◽  
Growth Models ◽  
Human Capital Accumulation ◽  
Growth Path ◽  
Balanced Growth ◽  
Long Run ◽  
Theoretical Finding ◽  
Balanced Growth Path

Abstract Recent R&D growth models without strong scale effects imply that long-run growth rates depend only on parameters that are usually taken to be exogenous. However, integrating human capital accumulation into models of this type, Arnold (2002) demonstrates that subsidizing education accelerates growth. The present paper addresses welfare issues in Arnold’s model. The main theoretical finding of the paper is that a system of subsidies that implements the optimal balanced growth path as a decentralized equilibrium includes zero subsidies to education, while R&D activity should be either subsidized or taxed. To shed further light on the latter result, the model is calibrated and it turns out that along the balanced growth path, the decentralized economy underinvests in R&D, i.e. R&D activities should be subsidized.

scholarly journals CHILDREN’S HEALTH, HUMAN CAPITAL ACCUMULATION, AND R&D-BASED ECONOMIC GROWTH

2019 ◽  
pp. 1-18 ◽  
Author(s):  
Annarita Baldanzi ◽  
Alberto Bucci ◽  
Klaus Prettner
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Parental Education ◽  
Children's Health ◽  
Children’S Health ◽  
Human Capital Accumulation ◽  
Education And Health ◽  
Health Investments ◽  
Long Run

Abstract We analyze the effects of children’s health on human capital accumulation and on long-run economic growth. For this purpose, we design an R&D-based growth model in which the stock of human capital of the next generation is determined by parental education and health investments. We show that (i) there is a complementarity between education and health: if parents want to have better educated children, they also raise health investments and vice versa; (ii) parental health investments exert an unambiguously positive effect on long-run economic growth, (iii) faster population growth reduces long-run economic growth. These results are consistent with the empirical evidence for modern economies in the twentieth century.

scholarly journals Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics

2014 ◽  
Vol 104 (6) ◽  
pp. 1551-1596 ◽  
Author(s):  
Jesper Bagger ◽  
François Fontaine ◽  
Fabien Postel-Vinay ◽  
Jean-Marc Robin
Keyword(s):  
Human Capital ◽  
Job Search ◽  
Capital Accumulation ◽  
Wage Growth ◽  
Search Model ◽  
Human Capital Accumulation ◽  
Wage Dynamics ◽  
Equilibrium Search ◽  
Individual Level ◽  
Wage Increases

We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity, and individual-level shocks. Wage growth is decomposed into contributions of human capital and job search, within and between jobs. Human capital accumulation is largest for highly educated workers. The contribution from job search to wage growth, both within and between jobs, declines over the first ten years of a career—the “job-shopping” phase of a working life—after which workers settle into high-quality jobs using outside offers to generate gradual wage increases, thus reaping the benefits from competition between employers. (JEL J24, J31, J63, J64)

scholarly journals HUMAN CAPITAL AND INNOVATION IN A MONETARY SCHUMPETERIAN GROWTH MODEL

2017 ◽  
Vol 23 (5) ◽  
pp. 1875-1894 ◽  
Author(s):  
Angus C. Chu ◽  
Lei Ning ◽  
Dongming Zhu
Keyword(s):  
Monetary Policy ◽  
Human Capital ◽  
Interest Rate ◽  
Growth Model ◽  
Growth Rates ◽  
Capital Accumulation ◽  
Nominal Interest Rate ◽  
Human Capital Accumulation ◽  
Schumpeterian Growth ◽  
Long Run

This study explores the growth and welfare effects of monetary policy in a scale-invariant Schumpeterian growth model with endogenous human capital accumulation. We model money demand via a cash-in-advance (CIA) constraint on research and development (R&D) investment. Our results can be summarized as follows. We find that an increase in the nominal interest rate leads to a decrease in R&D and human capital investment, which, in turn, reduces the long-run growth rates of technology and output. This result stands in stark contrast to the case of exogenous human capital accumulation in which the long-run growth rates of technology and output are independent of the nominal interest rate. Simulating the transitional dynamics, we find that the additional long-run growth effect under endogenous human capital accumulation amplifies the welfare effect of monetary policy. Decreasing the nominal interest rate from 10% to 0% leads to a welfare gain that is equivalent to a permanent increase in consumption of 2.82% (2.38%) under endogenous (exogenous) human capital accumulation.

Mortality Reductions, Educational Attainment, and Fertility Choice

2005 ◽  
Vol 95 (3) ◽  
pp. 580-601 ◽  
Author(s):  
Rodrigo R Soares
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Life Expectancy ◽  
Demographic Transition ◽  
Capital Accumulation ◽  
Critical Level ◽  
Human Capital Accumulation ◽  
Fertility Choice ◽  
Life Expectancy At Birth ◽  
Long Run

This paper develops a model where reductions in mortality are the main force behind economic development. The model generates a pattern of changes similar to the demographic transition, where gains in life expectancy at birth are followed by reductions in fertility and increases in the rate of human capital accumulation. The onset of the transition is characterized by a critical level of life expectancy at birth, which marks the movement of the economy from a Malthusian equilibrium to an equilibrium with investments in human capital and the possibility of long-run growth.

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