Complementarity between heterogeneus human capital and R&D: can job-training avoid low development traps?
AbstractThis paper uses a non-overlapping generations model of endogenous growth to describe the effect of human capitalâ€™s heterogeneity on economic growth. In the model, workers can accumulate human capital not only through education, but also through on-the-job training (j-t); enterpreneurs can invest in R&D and can offer training. We model two different typologies of training. The first, technology-general (T-GT), is offered even without R&D and to all workers; the second one, technologyspecific T-S T), is joined to the success of innovative activity and provided just to those workers engaged in research. The paper, by extending Redding (1996), demonstrates that human capital composition, which is often neglected in endogenous growth models, is important in determining the probability of innovation occurring and the economyâ€™s rate of growth. In particular, it shows that complementarities between different types of human capital investment are important. Moreover, training causes a multiplicity of equilibria in education investment and rate of growth, and technology-general training avoids low development traps when R&D is absent.
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Bibliographic InfoPaper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 70.
Date of creation: Feb 2002
Date of revision:
general versus specific training; innovation; heterogeneous human capital; endogenous growth.;
Find related papers by JEL classification:
- I2 - Health, Education, and Welfare - - Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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