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.
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 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)
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.:
- Psacharopoulos, George, 1994.
"Returns to investment in education: A global update,"
World Development, Elsevier,
Elsevier, vol. 22(9), pages 1325-1343, September.
- Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series, The World Bank 1067, The World Bank.
- Judson, Ruth, 1998. " Economic Growth and Investment in Education: How Allocation Matters," Journal of Economic Growth, Springer, Springer, vol. 3(4), pages 337-59, December.
- Driskill, Robert A & Horowitz, Andrew W, 2002. "Investment in Hierarchical Human Capital," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 6(1), pages 48-58, February.
- Amparo Castello & Rafael Domenech, 2002. "Human Capital Inequality and Economic Growth: Some New Evidence," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C187-C200, March.
- Galor, Oded & Tsiddon, Daniel, 1997.
" The Distribution of Human Capital and Economic Growth,"
Journal of Economic Growth, Springer,
Springer, vol. 2(1), pages 93-124, March.
- Galor, O. & Tsiddon, D., 1996. "The Distribution of Human Capital and Economic Growth," Papers, Tel Aviv - the Sackler Institute of Economic Studies 18-96, Tel Aviv - the Sackler Institute of Economic Studies.
- Su, Xuejuan, 2004. "The allocation of public funds in a hierarchical educational system," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 28(12), pages 2485-2510, December.
- George Psacharopoulos & Harry Anthony Patrinos, 2004.
"Returns to investment in education: a further update,"
Education Economics, Taylor & Francis Journals,
Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series, The World Bank 2881, The World Bank.
- Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series, The World Bank 2525, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.