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Human Capital Development

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    Abstract

    This paper has two main objectives. First, it assesses and measures the gaps in the stock of human capital across the world. It presents how effectively different regions are improving their stock of human capital, and how long it will take for developing countries to catch up with the current level of human capital in industrialized countries. Second, it revisits the contribution of human capital to economic growth, proposing a decomposition method to account for employment growth—which is also impacted on by human capital growth—in explaining growth in total output per worker. The proposed methodology introduces employment growth in the growth decomposition through the employment growth elasticity. It is conjectured that as human capital increases, employment growth elasticity will decrease, making the economy less labor-intensive, resulting in higher economic growth. The proposed method points to the importance of the micro linkage between human capital and the labor market.

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    Bibliographic Info

    Article provided by Asian Development Bank in its journal Asian Development Review.

    Volume (Year): 27-2 (2010)
    Issue (Month): 2 ()
    Pages: 29-56

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    Handle: RePEc:ris:adbadr:2722

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    Cited by:
    1. Gounder, Rukmani & Xing, Zhongwei, 2012. "Impact of education and health on poverty reduction: Monetary and non-monetary evidence from Fiji," Economic Modelling, Elsevier, vol. 29(3), pages 787-794.
    2. Jens Hagen & Toman Omar Mahmoud & Natalia Trofimenko, 2010. "Orphanhood and Critical Periods in Children’s Human Capital Formation: Long-Run Evidence from North-Western Tanzania," Kiel Working Papers 1649, Kiel Institute for the World Economy.

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