Micro evidence on human capital as the engine of growth
Trostel, Philip A. (2000) Micro evidence on human capital as the engine of growth. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.555).
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This study examines a crucial assumption in much of the recent work on endogenous growth, namely, constant returns to scale in the production of human capital. A simple model is constructed to show that the returns to scale in human capital production can be inferred from the relationship between the wage rate and years of schooling. A large international micro dataset is used to estimate this relationship. The empirical evidence is decisive. There are decreasing returns to scale in human capital production; that is, the micro-level evidence is not supportive of endogenous growth driven by human capital accumulation.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HD Industries. Land use. Labor|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Human capital, Economic development, Endogenous growth (Economics), Wages -- Effect of education on|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Official Date:||March 2000|
|Number of Pages:||30|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
Acemoglu, Daron, "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," Quarterly Journal of Economics, August 1996.
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