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Technological change, human capital update and growth policies

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  • Fernando Pueyo

    ()

  • Marcos Sanso

    ()

Abstract

This paper presents a model of growth driven simultaneously by innovation and human capital accumulation. Two different long-run equilibria are possible, according to whether or not workers’ skills are completely updated over time as knowledge expands. Skill gaps could arise as a consequence of poor education infrastructures, even in the efficient solution; in such circumstances, we find that whilst education policies are able to encourage growth, R&D policies are not. Otherwise, subsidizing education becomes ineffective for enhancing growth, although it could be necessary to avoid possible skill gaps originated by the R&D growth-enhancing policy. Copyright Springer-Verlag Berlin/Heidelberg 2004

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File URL: http://hdl.handle.net/10.1007/s10108-004-0093-3
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Bibliographic Info

Article provided by Springer in its journal Spanish Economic Review.

Volume (Year): 7 (2004)
Issue (Month): 1 (January)
Pages: 23-41

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Handle: RePEc:spr:specre:v:7:y:2004:i:1:p:23-41

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Related research

Keywords: Innovation; education; skill gaps;

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