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The growth effects of education in Australia

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  • Paradiso, Antonio
  • Kumar, Saten
  • Rao, B. Bhaskara

Abstract

The growth effects of human capital, measured in various ways, are controversial and inconclusive. In this paper we estimate the growth effect of human capital with country specific time series data for Australia. In doing so, we extended the Solow (1956) growth model by using educational attainment as a measure of human capital developed by Barro and Lee (2010). The extended Solow (1956) model performs well after allowing for the presence of structural changes. Our results, based on alternative time series methods, show that educational attainment has a small and significant permanent effect on the growth rate of per worker output in Australia. For comparison of results, alternative measures of human capital are also utilized.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34791.

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Date of creation: 15 Nov 2011
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Handle: RePEc:pra:mprapa:34791

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Keywords: SSGR; Economic Growth; Education; Australia;

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Cited by:
  1. Arusha Cooray & Marcella Lucchetta & Antonio Paradiso, 2013. "A knowledge economy approach in empirical growth models for the Nordic countries," Economics Working Papers, School of Economics, University of Wollongong, NSW, Australia wp13-06, School of Economics, University of Wollongong, NSW, Australia.
  2. Arusha Cooray & Antonio Paradiso, 2012. "The level and growth effects in empirical growth models for the Nordic countries: A knowledge economy approach," CAMA Working Papers 2012-36, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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