Alternatives in human capital accumulation: implications for economic growth
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.
|Date of creation:||1996|
|Date of revision:|
|Contact details of provider:|| Postal: 20th Street and Constitution Avenue, NW, Washington, DC 20551|
Web page: http://www.federalreserve.gov/
More information through EDIRC
|Order Information:||Web: http://www.federalreserve.gov/pubs/ifdp/order.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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 108-32, February.
When requesting a correction, please mention this item's handle: RePEc:fip:fedgif:550. 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: (Marlene Vikor)
If references are entirely missing, you can add them using this form.