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From rubble to recovery: capital, labor, and gender in the “economic miracles” of Germany and Japan

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  • Kenzhegaliyeva, Zhaniya

Abstract

This paper analyzes the postwar economic growth of Germany and Japan using the Solow Growth Model and its extensions. By examining historical data on savings, investment, capital accumulation, and labor force dynamics, the study identifies the mechanisms behind rapid convergence toward steady-state output. Extending the model to incorporate human capital and labor heterogeneity, it highlights the role of mass education and gender inclusion in sustaining growth. Differences in female labor participation across East and West Germany and Japan are analyzed using the feminization U-hypothesis. The paper also considers political background and cultural factors shaping labor and capital outcomes. It concludes with policy recommendations for modern developing economies, drawn from the postwar experiences of Germany and Japan, emphasizing inclusive labor use, human capital investment, institutional credibility, and capital deepening.

Suggested Citation

  • Kenzhegaliyeva, Zhaniya, 2025. "From rubble to recovery: capital, labor, and gender in the “economic miracles” of Germany and Japan," MPRA Paper 126039, University Library of Munich, Germany, revised 02 Sep 2025.
    • Handle: RePEc:pra:mprapa:126039
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    File URL: https://mpra.ub.uni-muenchen.de/126039/1/MPRA_paper_126039.pdf
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    References listed on IDEAS

    as
    1. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    2. Takayoshi Kusago, 2007. "Rethinking of Economic Growth and Life Satisfaction in Post-Wwii Japan – A Fresh Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(1), pages 79-102, March.
    3. Bianchi, Nicola & Giorcelli, Michela, 2023. "Reconstruction Aid, Public Infrastructure, and Economic Development: The Case of the Marshall Plan in Italy," The Journal of Economic History, Cambridge University Press, vol. 83(2), pages 501-537, June.
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    Keywords

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    JEL classification:

    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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