We develop an endogenous growth model in which new technology and new skills are bounded complements -- they complement each other to a point, but beyond this the impact of each factor is constrained by the level of the other. As a result, both technological progress and human capital accumulation are necessary for sustained productivity growth, but neither alone is sufficient. Rapid technological progress generates increased returns to education and encourages each generation to spend more time at school. Rapid human capital accumulation increases the feasability and profitability of innovation and encourages the private business sector to allocate more resources towards R&D. Our model has important implications for the effectiveness of alternative growth-promoting policies, for the interpretation of the empirical relationship between growth and schooling, and for the relationship between growth and intergenerational wage dispersion.
Nous développons un modèle de croissance endogène dans lequel la nouvelle technologie et les nouvelles compétences sont des compléments limités -- elles se complémentent jusqu'à un certain point, au delà duquel l'impact de chaque facteur est contraint par le niveau de l'autre. Alors, le progrès technologique et l'accumulation de capital humain sont nécessaires les deux pour une croissance soutenue de la productivité, mais aucun n'est suffisant seul. Un progrès technologique rapide génère des rendements croissants de l'éducation et encourage chaque génération à consacrer plus de temps à l'école. Une accumulation rapide de capital humain accroît la faisabilité et la profitabilité de l'innovation et encourage le secteur privé à allouer plus de ressources en recherche et développement. Notre modèle a des implications importantes pour la relation empirique entre croissance et éducation, et pour la relation entre croissance et dispersion intergénérationnelle des salaires.
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Huw Lloyd-Ellis & Joanne Roberts, 2000.
"Twin Engines of Growth,"
Working Papers
jorob-00-02, University of Toronto, Department of Economics.
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Find related papers by JEL classification: E0 - Macroeconomics and Monetary Economics - - General O1 - Economic Development, Technological Change, and Growth - - Economic Development O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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Carneiro, Pedro & Heckman, James J., 2003.
"Human Capital Policy,"
IZA Discussion Papers
821, Institute for the Study of Labor (IZA).
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James Heckman & Pedro Carneiro, 2003.
"Human Capital Policy,"
NBER Working Papers
9495, National Bureau of Economic Research, Inc.
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