Human Capital Composition, Proximity to Technology Frontier and Productivity Growth
AbstractThe role of human capital composition has been given importance in the most recent endogenous growth models. Assuming that primary as well as secondary education is more suitable for imitation and higher education is more appropriate for innovation, this paper empirically investigates whether the contribution of human capital to productivity growth depends on the composition of human capital and the proximity to technology frontier in a panel of 87 sample countries over the period of 1970 to 2004. The sample is further divided into 28 high, 37 medium, and 22 low income countries to gain some insights into the importance of composition effects of human capital on growth in developing countries relative to their developed counterparts. Using different levels of human capital data from four alternative sources empirical results from system GMM estimator demonstrate that growth enhancing effect of skilled human capital increases with the proximity to the technology frontier only for high and medium income countries. Unskilled human capital is contributing more for low income countries as they move closer to the technology frontier. Matured workers with tertiary education are more growth enhancing for high and medium income countries, whereas younger workers with secondary education are more growth improving for low income countries. Estimated results are consistent across male and female workers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 23-10.
Length: 53 pages
Date of creation: May 2010
Date of revision:
Contact details of provider:
Postal: Department of Economics, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-18 (All new papers)
- NEP-FDG-2010-09-18 (Financial Development & Growth)
- NEP-HRM-2010-09-18 (Human Capital & Human Resource Management)
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.:
- Angel de la Fuente & Rafael Donénech, 2000.
"Human Capital in Growth Regressions: How much Difference Does Data Quality Make?,"
OECD Economics Department Working Papers
262, OECD Publishing.
- Angel de la Fuente & Rafael DomÃ©nech, 2006. "Human Capital in Growth Regressions: How Much Difference Does Data Quality Make?," Journal of the European Economic Association, MIT Press, MIT Press, vol. 4(1), pages 1-36, 03.
- de la Fuente, Angel & DomÃ©nech, Rafael, 2000. "Human Capital In Growth Regressions: How Much Difference Does Data Quality Make?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2466, C.E.P.R. Discussion Papers.
- ?gel de la Fuente & Rafael Dom?ech, . "Human Capital In Growth Regressions: How Much Difference Does Data Quality Make?," UFAE and IAE Working Papers, Unitat de Fonaments de l'AnÃ lisi EconÃ²mica (UAB) and Institut d'AnÃ lisi EconÃ²mica (CSIC) 446.00, Unitat de Fonaments de l'AnÃ lisi EconÃ²mica (UAB) and Institut d'AnÃ lisi EconÃ²mica (CSIC).
- Angel de la Fuente & Rafael Domenech, 2001. "Schooling Data, Technological Diffusion, and the Neoclassical Model," American Economic Review, American Economic Association, vol. 91(2), pages 323-327, May.
- Gregorio GimÃ©nez, 2011. "Imitations, economic activity and welfare," Documentos de Trabajo, Facultad de Ciencias EconÃ³micas y Empresariales, Universidad de Zaragoza dt2011-03, Facultad de Ciencias EconÃ³micas y Empresariales, Universidad de Zaragoza.
- Danquah, Michael & Ouattara, Osman & Speight, Alan, 2010. "Productivity growth, human capital and distance to frontier in Sub-Saharan Africa," Proceedings of the German Development Economics Conference, Hannover 2010 54, Verein für Socialpolitik, Research Committee Development Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Angus).
If references are entirely missing, you can add them using this form.