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Human capital and the future of transition economies

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  • Spagat, Michael

Abstract

Transition economies have an initial condition of high human capital relative to GDP per capita. But they will not necessarily realize their latent high growth potential. In the model, at a good equilibrium a large number of children of well-educated parents take advantage of their family backgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational achievements are wasted as children fail to build upon their parents' achievements. I argue that this sort of multiple equilibria provides a basis for distinguishing development economics from transition economics.
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  • Spagat, Michael, 2006. "Human capital and the future of transition economies," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 44-56, March.
    • Handle: RePEc:eee:jcecon:v:34:y:2006:i:1:p:44-56
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    2. Spagat, Michael, 2002. "Human Capital, Growth and Inequality in Transition Economies," CEPR Discussion Papers 3556, C.E.P.R. Discussion Papers.
    3. Habibov, Nazim, 2012. "Early childhood care and education attendance in Central Asia," Children and Youth Services Review, Elsevier, vol. 34(4), pages 798-806.
    4. Yue Sun & Liqiu Zhao & Zhong Zhao, 2024. "Hukou Status and Children’s Education in China," Working Papers 2024-004, Human Capital and Economic Opportunity Working Group.
    5. Searing, Elizabeth A.M. & Rios-Avila, Fernando & Lecy, Jesse D., 2013. "The impact of psychological trauma on wages in post-conflict Bosnia and Herzegovina," Social Science & Medicine, Elsevier, vol. 96(C), pages 165-173.
    6. Sašo Polanec, 2004. "Convergence at Last? : Evidence from Transition Countries," Eastern European Economics, Taylor & Francis Journals, vol. 42(4), pages 55-80, July.
    7. Arabsheibani, Reza & Staneva, Anita, 2012. "Returns to Education in Russia: Where There Is Risky Sexual Behaviour There Is Also an Instrument," IZA Discussion Papers 6726, Institute of Labor Economics (IZA).
    8. Desislava Kolarova, 2003. "Business Services in the Economies of France and Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 85-101.
    9. Marta C. N. Simões, 2011. "Education Composition and Growth: A Pooled Mean Group Analysis of OECD Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(4), pages 455-471, December.
    10. Mariya Neycheva, 2016. "Secondary versus higher education for growth: the case of three countries with different human capital’s structure and quality," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2367-2393, November.
    11. Mihails Hazans & Ija Trapeznikova, 2006. "Access to Secondary Education in Albania: Incentives, Obstacles, and Policy Spillovers," SSE Riga/BICEPS Research Papers 2006-1, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    12. Sun, Yue & Zhao, Liqiu & Zhao, Zhong, 2024. "Hukou status and children's education in China," GLO Discussion Paper Series 1386, Global Labor Organization (GLO).
    13. Wioletta Wierzbicka, 2021. "Differentiation in levels of human capital among small cities in Warminsko-Mazurskie Voivodship," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 209-222, December.
    14. Tilman Brück & Damir Esenaliev, 2013. "Post-Socialist Transition and the Intergenerational Transmission of Education in Kyrgyzstan," Discussion Papers of DIW Berlin 1284, DIW Berlin, German Institute for Economic Research.
    15. Yelena Kalyuzhnova & Uma Kambhampati, 2007. "Education or employment-choices facing young people in Kazakhstan," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(5), pages 607-626.

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    More about this item

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I2 - Health, Education, and Welfare - - Education
    • D1 - Microeconomics - - Household Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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