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Returns to Human Capital and Investment in New Technology

Author

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  • Mr. Rodolfo Luzio
  • Mr. Steven V Dunaway
  • Mr. Martin D Kaufman

Abstract

This paper presents a simple framework that illustrates the link between skill-based wage differentiation and human capital acquisition given skill-biased technical progress. The analysis points to the economic costs resulting from labor market and income redistribution policies that prevent the skill premium from playing its role in fostering human capital accumulation and the adoption of new technologies. The study compares key economic indicators among Canada, France, Germany, the United Kingdom, and the United States. Differences in wage differen-tiation and investment in new technologies among these countries could be related to policies affecting labor markets; such practices may reflect social choices.

Suggested Citation

  • Mr. Rodolfo Luzio & Mr. Steven V Dunaway & Mr. Martin D Kaufman, 2001. "Returns to Human Capital and Investment in New Technology," IMF Working Papers 2001/133, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2001/133
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    Cited by:

    1. David de la Croix & Frédéric Docquier, 2007. "School Attendance and Skill Premiums in France and the US: A General Equilibrium Approach," Fiscal Studies, Institute for Fiscal Studies, vol. 28(4), pages 383-416, December.
    2. Yeo, Yeongjun & Lee, Jeong-Dong, 2020. "Revitalizing the race between technology and education: Investigating the growth strategy for the knowledge-based economy based on a CGE analysis," Technology in Society, Elsevier, vol. 62(C).
    3. Irena Zareva, 2004. "Human Capital as a Main Element of intangible Assets," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 118-136.

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