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Dynamic Analysis of Education, Automation, and Economic Growth

Author

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  • Kohei Okada

    (Graduate School of Economics, Osaka University)

Abstract

Ever since the onset of the Industrial Revolution,automation has had signicant impacts on economic growth,labor,the education decision-making of individuals,and education policy. In this study,we aim to examine the complex relationship between education,automation,and economic growth. We employ an overlapping-generations model with endogenous education decision-making and automation. Our fndings show that an economy converges to a steady state where automation occurs and per capita output is high if productivity is high.On the other hand,we show that an economy converges to a steady state where automation does not occur and per capita output is low if productivity is low. In addition,we examine how education subsidy policy affects the economy when productivity is low. If the efficiency of education is high,the government can steer an economy away from a steady state without automation by investing more resources in education.If the efficiency of education is low,there can exist multiple steady states where automation occurs in one but not in the other.

Suggested Citation

  • Kohei Okada, 2020. "Dynamic Analysis of Education, Automation, and Economic Growth," Discussion Papers in Economics and Business 20-09, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:2009
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    File URL: http://www2.econ.osaka-u.ac.jp/econ_society/dp/2009.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Education; Automation; Economicgrowth;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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