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Growth, Distance to Frontier and Composition of Human Capital

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Author Info
Aghion, Philippe
Meghir, Costas
Vandenbussche, Jérôme

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Abstract

We examine the contribution of human capital to economy-wide technological improvements through the two channels of innovation and imitation. We develop a theoretical model showing that skilled labour has a higher growth-enhancing effect closer to the technological frontier under the reasonable assumption that innovation is a relatively more skill intensive activity than imitation. Also, we provide evidence in favour of this prediction using a panel dataset covering 19 OECD countries between 1960 and 2000 and explain why previous empirical research had found no positive relationship between initial schooling level and subsequent growth in rich countries. In particular, we show that in OECD economies it is crucial to isolate the two separate margins of primary/secondary and tertiary education. Interestingly, the latter type of schooling proves to be a factor of economic divergence.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4860.

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Date of creation: Jan 2005
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Handle: RePEc:cpr:ceprdp:4860

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Related research
Keywords: convergence; economic growth; education; human capital; imitation; innovation; technological frontier; wave;

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Philippe Aghion & Paul A. David & Dominique Foray, 2007. "Linking policy research and practice in ‘STIG Systems’: Many obstacles, but some ways forward," CEMI Working Papers cemi-workingpaper-2007-00, Ecole Polytechnique Fédérale de Lausanne, Collège du Management de la Technologie, Management of Technology and Entrepreneurship Institute, Chaire en Economie et Management de l'Innovation. [Downloadable!]
  2. Bert Minne & Marc van der Steeg & Dinand Webbink, 2008. "Skill gaps in the EU: role for education and training policies," CPB Documents 162, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Maria, Corrado di & Stryszowski, Piotr, 2006. "Brain drain and distance to frontier," Discussion Paper 64, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Kui-Wai Li & Tung Liu & Lihong Yun, 2007. "Technology Progress, Efficiency, and Scale of Economy in Post-reform China," Working Papers 200701, Ball State University, Department of Economics, revised Apr 2007. [Downloadable!]
  5. Hildegunn Ekroll Stokke, 2005. "Productivity Growth in Backward Economies and the Role of Barriers to Technology Adoption," Working Paper Series 4905, Department of Economics, Norwegian University of Science and Technology. [Downloadable!]
  6. Alex Coad, 2008. "Distance to Frontier and Appropriate Business Strategy," LEM Papers Series 2008/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
    Other versions:
  7. Ferrante, Francesco & Sabatini, Fabio, 2007. "Education, social capital and entrepreneurial selection in Italy," MPRA Paper 2451, University Library of Munich, Germany. [Downloadable!]
  8. Mika Maliranta & Rita Asplund, 2007. "Training and Hiring Strategies to Improve Firm Performance," Discussion Papers 1105, The Research Institute of the Finnish Economy. [Downloadable!]
  9. Juergen Janger & Johann Scharler & Alfred Stiglbauer, 2006. "The Potential Growth prospects of the Austrian Economy - Methods and Determinants," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 24-52, May 2006. [Downloadable!]
  10. Adriana Di Liberto & Francesco Pigliaru & P. Chelucci, 2008. "International TFP Dynamics and Human Capital Stocks: a Panel Data Analysis, 1960-2003," Working Paper CRENoS 200812, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  11. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer, vol. 15(2), pages 199-230, April. [Downloadable!] (restricted)
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  12. Chen, Li-Ju, 2009. "Women in Politics: A New Instrument for Studying the Impact of Education on Growth," Research Papers in Economics 2009:2, Stockholm University, Department of Economics. [Downloadable!]
  13. Miguel St. Aubyn & João Pereira, 2004. "What Level of Education Matters Most for Growth? Evidence from Portugal," Working Papers 2004/13, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
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  14. Tehmina S. Khan, 2006. "Productivity Growth, Technological Convergence, R&D, Trade, and Labor Markets: Evidence from the French Manufacturing Sector," IMF Working Papers 06/230, International Monetary Fund. [Downloadable!]
  15. Maurizio Iacopetta, 2006. "Human Capital Dispersion and Incentives to Innovate," DEGIT Conference Papers c011_013, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  16. Böckerman, Petri & Eero , Lehto & Huovari, Janne, 2008. "The return to the technological frontier: The conditional effect of plants’ R&D on their productivity in Finnish manufacturing," MPRA Paper 8715, University Library of Munich, Germany. [Downloadable!]
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