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Is Catching Up with Developed World’s Levels of Skills Possible for Poorer Countries?

Author

Listed:
  • Andrea Doneschi

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Rossana Patrón

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Marcel Vaillant

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

Abstract

Some countries seem to be lagging behind in global accumulation of skills. As the ratio of skilled to unskilled labour is key for growth (e.g. endogenous growth theory), this situation suggests a gloomy future for developing countries. Is catching up with the developed world`s levels of skills still possible? The poor performance of the education sector in many countries casts serious doubts on this. This note addresses this question, discussing the simplest necessary conditions for skill convergence. It is shown that the high share of unskilled workers in the inflow of entrants to the labour market may perpetuate low levels of skills endowment, making it impossible to catch up with the developed world. However, education policy could regulate the level and the speed of the accumulation process through suitable strategies.

Suggested Citation

  • Andrea Doneschi & Rossana Patrón & Marcel Vaillant, 2012. "Is Catching Up with Developed World’s Levels of Skills Possible for Poorer Countries?," Documentos de Trabajo (working papers) 2112, Department of Economics - dECON.
    • Handle: RePEc:ude:wpaper:2112
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    File URL: https://hdl.handle.net/20.500.12008/2246
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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