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Channels Through Which Human Capital Inequality Influences Economic Growth

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  • Amparo Castelló-Climent

    (Institute of International Economics, University of Valencia)

Abstract

This paper empirically investigates the theoretical predictions of some of the channels through which human capital inequality may discourage investment and growth. In a cross-section of countries over the period 1960-2000, findings reveal that, all other things being equal, a greater degree of human capital inequality increases fertility rates and reduces life expectancy, which in turn hampers the accumulation rates of human capital. This effect is reinforced in the countries where individuals find it difficult to access credit. Extensive sensitivity analyses show the results are robust across specifications and are not driven by atypical observations, endogenous regressors or unobservable heterogeneity.

Suggested Citation

  • Amparo Castelló-Climent, 2011. "Channels Through Which Human Capital Inequality Influences Economic Growth," Working Papers 1101, International Economics Institute, University of Valencia.
    • Handle: RePEc:iei:wpaper:1101
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    Cited by:

    1. Eyal Argov, 2018. "The Development Of Education In Israel And Its Contribution To Long-Term Growth," Israel Economic Review, Bank of Israel, vol. 16(1), pages 1-40.
    2. Wilfried Altzinger & Jesús Crespo Cuaresma & Alyssa Schneebaum & Bernhard Rumplmaier & Petra Sauer, 2015. "Education and Social Mobility in Europe: Levelling the Playing Field for Europe's Children and Fuelling its Economy. WWWforEurope Working Paper No. 80," WIFO Studies, WIFO, number 57887, Juni.
    3. Amparo Castelló-Climent, 2010. "Inequality and growth in advanced economies: an empirical investigation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 293-321, September.

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    More about this item

    Keywords

    Human capital inequality; structural form; investment rates; economic growth;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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