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Human capital in OECD countries: Technical change, efficiency and productivity

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  • Joaquin Maudos
  • Jose Manuel Pastor
  • Lorenzo Serrano

Abstract

The aim of this paper is to analyse the role of human capital in the productivity gains of the OECD countries in the period 1965-90, breaking down the productivity gains into technical change and gains in efficiency. For this purpose we use both a stochastic frontier approach and a non-parametric approach (DEA) and calculate Malmquist indices of productivity. The results obtained indicate the existence of both a level effect (a higher level of human capital raises labour productivity) and a rate effect (a higher level of human capital affects positively the rate of technical change) associated with human capital. The differences among countries in endowments of human capital have worked against labour productivity convergence, since the richer countries, thanks to their greater endowment of human capital, have experienced higher rates of technical change.

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  • Joaquin Maudos & Jose Manuel Pastor & Lorenzo Serrano, 2003. "Human capital in OECD countries: Technical change, efficiency and productivity," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 419-435.
    • Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:419-435
    DOI: 10.1080/0269217032000118756
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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