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Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence

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Gemmell, Norman

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Abstract

Various hypotheses have been put forward in recent years concerning the contributions of human capital to economic growth. This paper argues that school enrollment rates by far the most commonly used human capital measure in growth regressions attempting to test these hypotheses--conflate human capital stock and accumulation effects and lead to misinterpretations of the role of labor force growth. An alternative education-related human capital measure is constructed which is capable of distinguishing between stocks and flows. Applying this measure to samples of developed and less developed countries during the 1960-85 period suggests not only that there are important growth effects associated both with 'initial' stacks of, and subsequent growth in, human capital, but also that this new measure out-performs the simple school enrollment rates used in previous analyses. Copyright 1996 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 58 (1996)
Issue (Month): 1 (February)
Pages: 9-28
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Handle: RePEc:bla:obuest:v:58:y:1996:i:1:p:9-28

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  2. H Steedman, 1996. "Measuring the Quality of Educational Outputs: A Note," CEP Discussion Papers 0302, Centre for Economic Performance, LSE. [Downloadable!]
  3. Francis Teal, 2004. "Education, incomes, poverty and inequality in Ghana in the 1990s," Development and Comp Systems 0409006, EconWPA. [Downloadable!]
  4. Arnaud Chevalier, 2000. "Graduate over-education in the UK," CEE Discussion Papers 0007, Centre for the Economics of Education, LSE. [Downloadable!]
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  6. Nick Adnett, . "Competition in the School Curriculum: the economic and policy context in the UK," Working Papers 001, Staffordshire University, Business School.
  7. Arcand Jean-Louis & Béatrice d'Hombres, 2005. "Explaining the Negative Coefficient Associated with Human Capital in Augmented Solow Growth Regressions," Macroeconomics 0510010, EconWPA. [Downloadable!]
  8. Marta Simões, 2004. "The Education-growth Nexus Across OECD Countries: Schooling Levels and Parameter Heterogeneity," DEGIT Conference Papers c009_029, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  9. Djavad Salehi-Isfahani & Russell D. Murphy, 2006. "Labor market flexibility and investment in human capital," Working Papers e06-5, Virginia Polytechnic Institute and State University, Department of Economics. [Downloadable!]
  10. Andrés Rodríguez-Pose & Vassilis Tselios, 2007. "Mapping the european regional educational distribution: educational attainment and inequality," Working Papers 2007-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales. [Downloadable!]
  11. Torge Midendorf, 2005. "Human Capital and Economic Growth in OECD Countries," RWI Discussion Papers 0030, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
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  13. Arnaud Chevalier & Gauthier Lanot, 2001. "The relative effect of family and financial characteristics on educational echievement," CEE Discussion Papers 0008, Centre for the Economics of Education, LSE. [Downloadable!]
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  16. The Treasury, 2001. "Human Capital and the Inclusive Economy," Treasury Working Paper Series 01/16, New Zealand Treasury. [Downloadable!]
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  19. Michelle Baddeley & Kirsty McNay & Robert Cassen, 2006. "Divergence in India: Income differentials at the state level, 1970--97," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(6), pages 1000-1022, August. [Downloadable!] (restricted)
  20. von Greiff, Camilo, 2007. "Enrollment in higher education, ability and growth," Research Papers in Economics 2007:10, Stockholm University, Department of Economics. [Downloadable!]
  21. Wolfgang Becker, 1999. "Gesamtwirtschaftlicher Stellenwert der Humankapitalproduktion im Hochschulbereich in Westdeutschland," Discussion Paper Series 187, Universitaet Augsburg, Institute for Economics. [Downloadable!]
  22. Barbara Sianesi & John Van Reenen, 2000. "The Returns to Education: A Review of the Macro-Economic Literature," CEE Discussion Papers 0006, Centre for the Economics of Education, LSE. [Downloadable!]
  23. Janvier D. Nkurunziza & Floribert Ngaruko, 2004. "Explaining Growth in Burundi: 1960-2000," Macroeconomics 0409012, EconWPA. [Downloadable!]
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