IDEAS home Printed from https://ideas.repec.org/p/emo/wp2003/0402.html
   My bibliography  Save this paper

Many Types of Human Capital and Many Roles in U.S. Growth: Evidence from County-level Educational Attainment Data

Author

Listed:
  • Matthew Higgins
  • Daniel Levy
  • Andrew Young

Abstract

We utilize county-level data to explore the different roles of different types of human capital accumulation in U.S. growth determination. The data includes over 3,000 cross-sectional observations and 39 demographic control variables. The large number of observations provides enough degrees of freedom to obtain estimates for the U.S. as a whole and for 32 states in and of themselves. This data contains measures of educational attainment for four distinct categories: 1) 9 to 11 years; 2) High school diploma; 3) Some college; and 4) Bachelor degree or more. These variables represent human capital stocks for each and every county. This is a departure from much of the economic growth literature which has (at least in part) relied on extrapolation of stocks from flows, e.g. school enrollment data. We use a consistent two stage least squares estimation procedure. We find that: 1) The percentage of a county's population with less than a high-school education is negatively correlated with economic growth; 2) The percentage obtaining a high school diploma is positively correlated with growth; and 3) The percentage obtaining some college education has no clear relationship with economic growth, but 4) The percentage that obtains a bachelor degree or more is positively correlated with growth. Further, we find that: 5) There is significant qualitative heterogeneity in estimated coefficients across states for the 9 to 11 years and high school diploma categories, but 6) no qualitative heterogeneity for the college level categories. The most consistent conclusion across samples is that the percent of a county's population obtaining a bachelor degree or higher level of college education has a positive relationship with economic growth. Oddly enough, despite findings 2), 4), and 6) above, we find that the percentage of a county's population employed in educational services is negatively correlated with economic growth.

Suggested Citation

  • Matthew Higgins & Daniel Levy & Andrew Young, 2004. "Many Types of Human Capital and Many Roles in U.S. Growth: Evidence from County-level Educational Attainment Data," Emory Economics 0402, Department of Economics, Emory University (Atlanta).
  • Handle: RePEc:emo:wp2003:0402
    as

    Download full text from publisher

    File URL: http://economics.emory.edu/home/assets/workingpapers/levy_04_02_paper.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-380, December.
    2. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June.
    3. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
    4. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
    5. Brian J. Surette, 1997. "The effects of two-year college on the labor market and schooling experiences of young men," Finance and Economics Discussion Series 1997-44, Board of Governors of the Federal Reserve System (U.S.).
    6. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
    7. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
    8. Matthew Higgins & Daniel Levy & Andrew Young, 2003. "Growth and Convergence across the U.S.: Evidence from County-level Data," Emory Economics 0306, Department of Economics, Emory University (Atlanta).
    9. 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.
    10. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    11. David Cass, 1965. "Optimum Growth in an Aggregative Model of Capital Accumulation," Review of Economic Studies, Oxford University Press, vol. 32(3), pages 233-240.
    12. Peter Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters,in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114 National Bureau of Economic Research, Inc.
    13. Michael Marlow, 2001. "Bureaucracy and student performance in US public schools," Applied Economics, Taylor & Francis Journals, vol. 33(10), pages 1341-1350.
    14. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Snir, Avichai & Levy, Daniel, 2010. "Economic Growth in the Potterian Economy," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 211-236.
    2. Avichai Snir & Daniel Levy, 2007. "Human Capital and Economic Growth in the Potterian Economy," Emory Economics 0702, Department of Economics, Emory University (Atlanta).

    More about this item

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emo:wp2003:0402. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sue Mialon). General contact details of provider: http://edirc.repec.org/data/deemous.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.