The Impact of Demographic Change on Human Capital Accumulation

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.

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Intergenerational Mobility and Unequal School Opportunity

The Economic Journal ◽

10.1093/ej/ueaa062 ◽

2020 ◽

Author(s):

Andreu Arenas ◽

Jean Hindriks

Keyword(s):

Human Capital ◽

Capital Accumulation ◽

Intergenerational Mobility ◽

Assortative Matching ◽

Human Capital Accumulation ◽

Positive Effects ◽

Intergenerational Income Mobility ◽

The Usa ◽

Income Dispersion ◽

The Impact

Abstract We analyse the impact of unequal school opportunity on intergenerational income mobility and human capital accumulation. Building upon the classical Becker–Tomes–Solon framework, we use a regime-switch model allowing for differences in income transmission across groups. We find that unequal school opportunity raises average human capital because of assortative matching. However, because income dispersion tends to be higher at the top, in most cases unequal school opportunity decreases intergenerational mobility. Calibrating the model to the USA, simulations suggest that school equalisation and desegregation policies have positive effects on mobility at relatively small efficiency costs.

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THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL

Revista de Economia e Agronegócio ◽

10.25070/rea.v16i1.546 ◽

2018 ◽

Vol 16 (1) ◽

pp. 29-41

Author(s):

André Berardo Coelho ◽

Nelson Leitão Paes

Keyword(s):

Economic Growth ◽

Human Capital ◽

Capital Accumulation ◽

Health Sector ◽

Point Of View ◽

Retirement Age ◽

Human Capital Accumulation ◽

The Impact ◽

Health Care Production

This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.

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Corruption, Public Expenditure and Human Capital Accumulation

Review of Economic Analysis ◽

10.15353/rea.v8i1.1430 ◽

2016 ◽

Vol 8 (1) ◽

pp. 17-45

Author(s):

Spyridon Boikos

Keyword(s):

Human Capital ◽

Capital Accumulation ◽

Capital Investment ◽

Public Expenditure ◽

Parametric Method ◽

Physical Capital ◽

Human Capital Accumulation ◽

Linear Effect ◽

The Public ◽

The Impact

This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.

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