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Growth and Cultural Preference for Education

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  • Chu, Angus C.
  • Furukawa, Yuichi
  • Zhu, Dongming

Abstract

In this note, we explore the implications of cultural preference for education in an innovation-driven growth model that features an interaction between endogenous human capital accumulation and technological progress. Parents invest in children's education partly due to the preference for their children to be educated. We consider a preference parameter that measures the degree of this parental or cultural preference for education. We find that a higher degree of parental preference for education increases human capital, which is conducive to innovation, but the increase in education investment also crowds out resources for R&D investment. As a result, a stronger cultural preference for education has an inverted-U effect on the steady-state equilibrium growth rate. We also analytically derive the complete transitional path of the equilibrium growth rate and find that an increase in the degree of education preference has an initial negative effect on economic growth.

Suggested Citation

  • Chu, Angus C. & Furukawa, Yuichi & Zhu, Dongming, 2015. "Growth and Cultural Preference for Education," MPRA Paper 66883, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66883
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    Cited by:

    1. Kohei Okada, 2020. "Education policy and R&D based growth in an overlapping generations model," Discussion Papers in Economics and Business 20-07, Osaka University, Graduate School of Economics.
    2. Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2022. "Culture and stages of economic development," Economics Letters, Elsevier, vol. 210(C).
    3. Chu, Angus & Cozzi, Guido & Fan, Haichao, 2022. "Natural Selection and Innovation-Driven Growth," MPRA Paper 113502, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic growth; human capital; education; culture;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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