IDEAS home Printed from https://ideas.repec.org/p/fip/fedgif/550.html
   My bibliography  Save this paper

Alternatives in human capital accumulation: implications for economic growth

Author

Listed:
  • Murat F. Iyigun
  • Ann L. Owen

Abstract

This paper demonstrates that considering alternative means of human capital accumulation, such as learning-by-doing, overturns the presumption that formal education is unconditionally beneficial for economic growth. It analyzes a model in which the average level of human capital creates externalities in future human capital accumulation and individuals can augment their human capital with work experience or education. The model shows that in the early stages of development, education enhances growth by creating a positive externality, and, in later stages, it may depress growth by leading to a negative externality. It also demonstrates the possibility of multiple equilibria in which low-income equilibria are characterized by under-education and high-income equilibria are characterized by over-education.

Suggested Citation

  • Murat F. Iyigun & Ann L. Owen, 1996. "Alternatives in human capital accumulation: implications for economic growth," International Finance Discussion Papers 550, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgif:550
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/ifdp/1996/550/default.htm
    Download Restriction: no
    File URL: http://www.federalreserve.gov/pubs/ifdp/1996/550/ifdp550.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fershtman, Chaim & Murphy, Kevin M & Weiss, Yoram, 1996. "Social Status, Education, and Growth," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 108-132, February.
    2. Mincer, Jacob, 1996. "Economic Development, Growth of Human Capital, and the Dynamics of the Wage Structure," Journal of Economic Growth, Springer, vol. 1(1), pages 29-48, March.
    3. Jacob Mincer, 1993. "Studies In Human Capital," Books, Edward Elgar Publishing, number 316.
    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. Schwalje, Wes, 2011. "A Conceptual Model of National Skills Formation for Knowledge-based Economic Development," MPRA Paper 30302, University Library of Munich, Germany.
    2. Galor, Oded & Tsiddon, Daniel, 1997. "The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.
    3. Schwalje, Wes, 2011. "Knowledge-based Economic Development as a Unifying Vision in a Post-awakening Arab World," MPRA Paper 30305, University Library of Munich, Germany.
    4. Galor, Oded & Tsiddon, Daniel, 1997. "The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Galor, Oded & Tsiddon, Daniel, 1997. "Technological Progress, Mobility, and Economic Growth," American Economic Review, American Economic Association, vol. 87(3), pages 363-382, June.
    2. Iyigun, Murat F & Owen, Ann L, 1999. "Entrepreneurs, Professionals, and Growth," Journal of Economic Growth, Springer, vol. 4(2), pages 213-232, June.
    3. Iyigun, Murat F & Owen, Ann L, 1998. "Risk, Entrepreneurship, and Human-Capital Accumulation," American Economic Review, American Economic Association, vol. 88(2), pages 454-457, May.
    4. Galor, Oded & Tsiddon, Daniel, 1997. "Technological Progress, Mobility, and Economic Growth," American Economic Review, American Economic Association, vol. 87(3), pages 363-382, June.
    5. Jacob Mincer & Stephan Danninger, 2000. "Technology, Unemployment, and Inflation," NBER Working Papers 7817, National Bureau of Economic Research, Inc.
    6. repec:dau:papers:123456789/4924 is not listed on IDEAS
    7. Diégo Legros & Fabrice Galia, 2012. "Are innovation and R&D the only sources of firms’ knowledge that increase productivity? An empirical investigation of French manufacturing firms," Journal of Productivity Analysis, Springer, vol. 38(2), pages 167-181, October.
    8. repec:iab:iabfme:201005(en is not listed on IDEAS
    9. Jellal, Mohamed & Bouzahzah, Mohamed, 2012. "Croyances culturelles éducation et croissance [Cultural beliefs education and growth]," MPRA Paper 38763, University Library of Munich, Germany.
    10. Michel Lubrano & Abdoul Aziz Junior Ndoye, 2014. "Bayesian Unconditional Quantile Regression: An Analysis of Recent Expansions in Wage Structure and Earnings Inequality in the US 1992–2009," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(2), pages 129-153, May.
    11. Chaim Fershtman & Uzi Segal, 2018. "Preferences and Social Influence," American Economic Journal: Microeconomics, American Economic Association, vol. 10(3), pages 124-142, August.
    12. Kirova, Alla, 2014. "Мястото На „Икономическия Империализъм” В Съвременната Политическа Икономия ["Economic imperialism” in the contemporary political economy]," MPRA Paper 75595, University Library of Munich, Germany.
    13. Gilles Le Garrec & Stéphane Lhuissier, 2011. "Life expectancy, heavy work and the return to education: lessons for the social security reform," SciencePo Working papers Main hal-01069511, HAL.
    14. Salladarré Frédéric & Guillotreau Patrice & Perraudeau Yves & Monfort Marie-Christine, 2010. "The Demand for Seafood Eco-Labels in France," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-26, December.
    15. Eve Caroli & Natalie Glance & Bernardo Huberman, 1995. "Formation en entreprise et débauchage de main d'oeuvre aux Etats-Unis : un modèle dynamique d'action collective," Revue Économique, Programme National Persée, vol. 46(3), pages 807-816.
    16. Arindam Banik & Pradip K. Bhaumik, 2018. "The Effects of Exogenous Technological Change on Wage Inequality in Rural India," Global Business Review, International Management Institute, vol. 19(6), pages 1515-1537, December.
    17. Tim Leunig, 1998. "New Answers to Old Questions: Transport Costs and the Slow Adoption of Ring Spinning in Lancashire," Oxford University Economic and Social History Series _022, Economics Group, Nuffield College, University of Oxford.
    18. repec:iab:iabfme:201005(de is not listed on IDEAS
    19. Kirill Borissov & Stéphane Lambrecht, 2009. "Growth and distribution in an AK-model with endogenous impatience," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(1), pages 93-112, April.
    20. Mary C. Daly & Osborne Jackson & Robert G. Valletta, 2007. "Educational attainment, unemployment, and wage inflation," Economic Review, Federal Reserve Bank of San Francisco, pages 49-61.
    21. David A. Brauer, 1998. "The changing U.S. income distribution: facts, explanations, and unresolved issues," Research Paper 9811, Federal Reserve Bank of New York.
    22. Heinig, Christian Hilligsøe & Nielsen, Martin Jessen, 2006. "Følger ECB og Fed den ny-keynesianske grundlektie?," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2006(1), pages 186-208.
    23. Corneo, Giacomo & Jeanne, Olivier, 2010. "Symbolic values, occupational choice, and economic development," European Economic Review, Elsevier, vol. 54(2), pages 237-251, February.

    More about this item

    Keywords

    Economic development; Human capital;

    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:fip:fedgif:550. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ryan Wolfslayer ; Keisha Fournillier (email available below). General contact details of provider: https://edirc.repec.org/data/frbgvus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.