The role of education supply in economic growth and the dynamics of skills
AbstractThis paper analyzes the role of the structure of skills in economic development through investment in human capital. With a lack of credit market for education and the presence of indivisibilities in investment in human capital as well as of congestion in the educational system, the initial distribution of skills affects aggregate output and investment both in the short and the long run, as there are multiple balanced growth paths. This paper provides an additional explanation for the persistent differences in per-capita output across countries. Moreover, it shows that cross-country differences in macroeconomic adjustment to educational policies can be attributed, among other factors, to differences in the distribution of skills.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1999023.
Date of creation: 01 Apr 1999
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Other versions of this item:
- Barthelemy, V. & Michel, P., 1999. "The Role of Education Supply in Economic Growth and the Dynamics of Skills," G.R.E.Q.A.M. 99a15, Universite Aix-Marseille III.
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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