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Human Capital and Economic Growth in OECD Countries

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  • Torge Midendorf

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Abstract

The results of the PISA 2000 study renewed the interest in the contribution of human capital to economic growth. So far the exploration of large country comparisons delivered rather mixed results. Concentrating on those OECD member countries which participated in PISA 2000, this paper uses panel data estimation techniques to refine this analysis. Estimation results reveal a positive impact of the human capital stock on economic growth suggesting that an increase in the average schooling years by one year yields a rise in the GDP growth rate of about 0.5 percentage points. However, when taking possible endogeneity into account in an instrumental variables approach, these conclusions on the impact of the level of human capital on economic growth is demonstrated to be rather fragile.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0030.

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Length: 22 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:rwi:dpaper:0030

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Keywords: Human capital accumulation; Convergence; Fixed-effects estimation; Instrumental variable estimation;

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  1. Low skills: why worry?
    by chris dillow in Stumbling and Mumbling on 2013-10-09 11:54:28
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Cited by:
  1. Arvanitis, Spyros & Loukis, Euripidis N., 2009. "Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland," Information Economics and Policy, Elsevier, vol. 21(1), pages 43-61, February.
  2. Valerien O. Pede & Raymond J.G.M. Florax & Henri L.F. de Groot, 2011. "Technological Leadership and Sectoral Employment Growth:A Spatial Econometric Analysis for U.S. Counties," Working Papers 11-1, Purdue University, College of Agriculture, Department of Agricultural Economics.

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