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Political Regime and Human Capital: A Cross-Country Analysis

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  • Jeroen Klomp
  • Jakob Haan

Abstract

We examine the relationship between different dimensions of the political regime in place and human capital using a two-step structural equation model. In the first step, we employ factor analysis on 16 human capital indicators to construct two new human capital measures (basic and advanced human capital). In the second step, we estimate the impact of our political variables on human capital, using a cross-sectional structural model for some 100 countries. We conclude that democracy is positively related to basic human capital, while regime instability has a negative link with basic human capital. Governance has a positive relationship with advanced human capital, while government instability has a negative link with advanced human capital. Finally, we also find an indirect positive effect of governance and democracy on both types of human capital through their effect on income. Copyright The Author(s) 2013

Suggested Citation

  • Jeroen Klomp & Jakob Haan, 2013. "Political Regime and Human Capital: A Cross-Country Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(1), pages 45-73, March.
    • Handle: RePEc:spr:soinre:v:111:y:2013:i:1:p:45-73
    DOI: 10.1007/s11205-011-9983-6
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    2. Idrissa Ouedraogo & Henri Ngoa Tabi & Henri Atangana Ondoa, 2020. "Effets de la qualité des institutions sur l'éducation en Afrique," African Development Review, African Development Bank, vol. 32(S1), pages 32-44, November.
    3. Evans, Olaniyi, 2022. "The criticality of institutions and the macroeconomy for education outcomes in Africa," MPRA Paper 118197, University Library of Munich, Germany.
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