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Human Capital and Labour Productivity, Integration of Institutions and Endogenous Growth


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  • Lei Delsen

    (University of Nijmegen)

  • Mark Schonewille

    (University of Nijmegen)


This paper is part of a project that attempts to reveal the way labour market institutions, human capital and labour productivity are interconnected. First we discuss two approaches in the human capital theory, stressing some difficulties that could be solved if the approaches are combined. It is argued that the Nelson-Phelps approach could be improved by adding elements from the Lucas model. We think that the production factor of human capital needs a more detailed description than usual in empirical research, e.g. further schooling and training, experience and external effects. Empirical tests show that the frequently obtained conclusion that investments in higher education are too low are doubtful. The tests also show the importance of further education and training, especially on-the-job training.

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Bibliographic Info

Paper provided by EconWPA in its series HEW with number 9908001.

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Length: 21 pages
Date of creation: 05 Aug 1999
Date of revision:
Handle: RePEc:wpa:wuwphe:9908001

Note: Type of Document - Acrobat Reader *.pdf; prepared on PC and Macintosh; to print on Postscript; pages: 21; figures: Empirical results in tables. Paper for the EALE conference in Regensburg, 23-26 September, 1999.
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Related research

Keywords: human capital; labour productivity; specificity; turnover; labour markets; education; off-the-job training; on-the-job training; models; experience; learning by doing;

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  1. Rutherford,Malcolm, 1994. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521451895, April.
  2. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc.
  3. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
  4. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  5. Torvik, Ragnar, 1993. " Talent, Growth and Income Distribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 581-96, December.
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Cited by:
  1. Oreggia, Eduardo, 2000. "Education Policies And Labour Markets: The Effect On Regional Growth In Mexico," ERSA conference papers ersa00p515, European Regional Science Association.


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