Human capital investment and growth: A dynamic education model
AbstractThe paper aims to explicitly determine the distribution of human capital across hierarchic educational stages along the transition process, and to analyse the determinants of its evolution. We apply optimal control principles in a model of endogenous growth with two successive stages of education. We show that with initial relative scarcity of advanced human capital, the duration of studies at the advanced level should increase until reaching its equilibrium level. We also find that, by raising the duration of studies at the advanced schooling level, improvements in the quality of education at this level also enhances the economy’s growth rate, both in the transition and in the long-run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 9374.
Date of creation: 2008
Date of revision:
Publication status: Published in Journal of Business Affairs Issue 1.Volume(2008): pp. 1-22
Human capital investment; growth; a dynamic model;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- 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-2008-07-20 (All new papers)
- NEP-DGE-2008-07-20 (Dynamic General Equilibrium)
- NEP-EDU-2008-07-20 (Education)
- NEP-HRM-2008-07-20 (Human Capital & Human Resource Management)
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