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The Growth Effects of Education in Australia

  • Antonio Paradiso

    ()

    (Department of Economics, University of Rome La Sapienza, Rome, Italy)

  • Saten Kumar

    ()

    (Department of Economics, Auckland University of Technology, Auckland, New Zealand.)

  • B. Bhaskara Rao

    (School of Economics and Finance, University of Western Sydney, Sydney, Australia.)

In this paper we estimate the growth effects of human capital with country-specific time series data for Australia. Previous empirical studies, based on international data, have been inconclusive, in terms of the extent of the contribution of human capital to growth. We extend the Solow (1956) growth model by using educational attainment as a measure of human capital, as developed by Barro and Lee (2010). The extended Solow (1956) model performs well after allowing for the presence of structural changes. Our results, based on alternative time series methods, show that educational attainment has a small and significant permanent effect on the growth rate of per worker output in Australia. Alternative measures of human capital are also utilized to ensure robustness of results.

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Paper provided by Auckland University of Technology, Department of Economics in its series Working Papers with number 2011-05.

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Length: 25 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:aut:wpaper:201105
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