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Complementarity between heterogeneus human capital and R&D: can job-training avoid low development traps?

  • Sergio Scicchitano

This paper uses a non-overlapping generations model of endogenous growth to describe the effect of human capital’s heterogeneity on economic growth. In the model, workers can accumulate human capital not only through education, but also through on-the-job training (j-t); enterpreneurs can invest in R&D and can offer training. We model two different typologies of training. The first, technology-general (T-GT), is offered even without R&D and to all workers; the second one, technologyspecific T-S T), is joined to the success of innovative activity and provided just to those workers engaged in research. The paper, by extending Redding (1996), demonstrates that human capital composition, which is often neglected in endogenous growth models, is important in determining the probability of innovation occurring and the economy’s rate of growth. In particular, it shows that complementarities between different types of human capital investment are important. Moreover, training causes a multiplicity of equilibria in education investment and rate of growth, and technology-general training avoids low development traps when R&D is absent.

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Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 70.

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Length: 30
Date of creation: Feb 2002
Date of revision:
Handle: RePEc:sap:wpaper:wp70
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  1. John Van Reenen, 2000. "Who gains when workers train? Training and corporate productivity in a panel of British industries," IFS Working Papers W00/04, Institute for Fiscal Studies.
  2. Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966 Elsevier.
  3. Alan Barrett & Philip J. O'Connell, 2001. "Does training generally work? The returns to in-company training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(3), pages 647-662, April.
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  6. Baldwin, John R. & Peters, Valerie, 2001. "Training as a Human Resource Strategy: The Response to Staff Shortages and Technological Change," Analytical Studies Branch Research Paper Series 2001154e, Statistics Canada, Analytical Studies Branch.
  7. repec:cup:cbooks:9780521576475 is not listed on IDEAS
  8. Jorn-Steffen Pischke, 1996. "Continuous Training in Germany," NBER Working Papers 5829, National Bureau of Economic Research, Inc.
  9. Aghion, Philippe & Howitt, Peter, 1991. "Growth and Unemployment," CEPR Discussion Papers 577, C.E.P.R. Discussion Papers.
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  12. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
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  14. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
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  17. Barbara Sianesi, 2002. "The returns to education: a review of the empirical macro-economic literature," IFS Working Papers W02/05, Institute for Fiscal Studies.
  18. Azariadis, Costas & Drazen, Allan, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 105(2), pages 501-26, May.
  19. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  20. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc.
  21. Barbara Sianesi & John Van Reenen, 2003. "The Returns to Education: Macroeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 157-200, 04.
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  23. Kenn Ariga & Giorgio Brunello, 2006. "Are education and training always complements? Evidence from Thailand," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(4), pages 613-629, July.
  24. Brunello, Giorgio, 2001. "On the Complementarity between Education and Training in Europe," IZA Discussion Papers 309, Institute for the Study of Labor (IZA).
  25. Baldwin, John R. & Yates, Janice, 1999. "Innovation, Training and Success," Analytical Studies Branch Research Paper Series 1999137e, Statistics Canada, Analytical Studies Branch.
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