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How much does a single graduation cohort from further education colleges contribute to an open regional economy

Author

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  • Kristinn Hermannsson

    (Shool of Education, University of Glasgow)

  • Patrizio Lecca

    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

  • J Kim Swales

    (Fraser of Allander Institute, Department of Economics, University of Strathclyde)

Abstract

Econometric analysis has been inconclusive in determining the contribution that increased skills have on macroeconomic performance whilst conventional growth accounting approaches to the same problem rest on restrictive assumptions. We propose an alternative micro-to-macro method which combines elements of growth accounting and numerical general equilibrium modelling. The usefulness of this approach for applied education policy analysis is demonstrated by evaluating the macroeconomic impact on the Scottish economy of a single graduation cohort from further education colleges. We find the macroeconomic impact to be significant. From a policy point of view this supports a revival of interest in the conventional teaching role of education institutions.

Suggested Citation

  • Kristinn Hermannsson & Patrizio Lecca & J Kim Swales, 2014. "How much does a single graduation cohort from further education colleges contribute to an open regional economy," Working Papers 1404, University of Strathclyde Business School, Department of Economics.
    • Handle: RePEc:str:wpaper:1404
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    2. Adalgiso Amendola & Cristian Barra & Roberto Zotti, 2020. "Does graduate human capital production increase local economic development? An instrumental variable approach," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 959-994, November.
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    More about this item

    Keywords

    Graduates; Further Education Colleges; Labour Supply; Economic Impact; General Equilibrium;
    All these keywords.

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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