Wilson, Robert A. and Briscoe, G. (Geoffrey) (2005) The impact of human capital on economic growth : a review. In: Descy, P. and Tessaring, M., (eds.) Impact of education and training : third report on vocational training research in Europe : background report. Cedefop Reference series (Number 54). Luxembourg: Office for Official Publications of the European Communities, pp. 13-61.

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Abstract

This review provides an in-depth appraisal of a wide body of international research that examines the links between education and training in a country and its macroeconomic growth. An initial analysis of broad statistics for all EU Member States suggests a loose correlation between investment in human resources and growth in gross national product (GNP), but clear causal relationships are difficult to establish. Increased investment in education is shown to lead to higher productivity and earnings for the individual and similarly, such investment results in significant social rates of return. The returns on investment in vocational training are more difficult to demonstrate. This study reviews a large number of growth models that attempt to specify and quantify the GNP and human resource relationship. Wide differences are found in the model specifications, the quality of the data inputs and the results obtained. Other links between investment in human capital and economic performance are reviewed using diverse literature sources on human resource management, corporate market value, company size and industry structure. The indirect impact of education on non-economic benefits is also examined in the context of the technological, spatial and environmental gains to society. It is concluded that, overall, the impact of investment in education and training on national economic growth is positive and significant. Some policy conclusions are drawn and directions for future research in this area are suggested.

Item Type:	Book Item
Subjects:	H Social Sciences > HD Industries. Land use. Labor L Education > LC Special aspects of education T Technology > T Technology (General)
Divisions:	Faculty of Social Sciences > Institute for Employment Research
Library of Congress Subject Headings (LCSH):	Education, Occupational training, Macroeconomics, Human resources, Industrial productivity, Vocational education, Technological innovations
Series Name:	Cedefop Reference series
Publisher:	Office for Official Publications of the European Communities
Place of Publication:	Luxembourg
Book Title:	Impact of education and training : third report on vocational training research in Europe : background report
Editor:	Descy, P. and Tessaring, M.
Official Date:	2005
Dates:	Date Event 2005 Published
Number:	Number 54
Number of Pages:	64
Page Range:	pp. 13-61
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access (Creative Commons)
Funder:	European Centre for the Development of Vocational Training
Open Access Version:	Other

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