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Education and Growth with Learning by Doing

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  • Marconi, Gabriele

    () (OECD)

  • de Grip, Andries

    () (ROA, Maastricht University)

Abstract

We develop a general equilibrium overlapping generations model which is based on the view that education makes workers more productive by increasing their ability to learn from work experience, rather than providing skills that directly increase productivity. One important implication of the model is that the enrolment rate to education has a negative effect on the GDP in the medium term and a positive effect in the long term. This could be an explanation for the weak empirical relationship between education and economic growth that has been found in the empirical macroeconomic literature. Conversely, for a given enrolment rate, the quality of education, as measured by workers' ability to learn, has a positive effect on the GDP both in the medium and in the long term.

Suggested Citation

  • Marconi, Gabriele & de Grip, Andries, 2015. "Education and Growth with Learning by Doing," IZA Discussion Papers 9081, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9081
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    References listed on IDEAS

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    Cited by:

    1. Norton, Douglas A., 2015. "Killing the (coordination) moment: How ambiguity eliminates the restart effect in voluntary contribution mechanism experiments," Economics Letters, Elsevier, vol. 126(C), pages 1-5.

    More about this item

    Keywords

    education; learning-by-doing; productivity; economic growth; overlapping generations model;

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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