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Does Longevity Cause Growth

  • Moshe Hazan

    (Hebrew University)

  • Hosny Zoabi

    (Hebrew University)

This article challenges conventional wisdom by arguing that greater longevity cannot explain the significant accumulation of human capital during the transition from stagnation to growth. This is because greater longevity raises children's future income proportionally at all levels of education, leaving the relative return between quality and quantity unaffected. This result is consistent with historical evidence that longevity began to increase long before education did. Our theory also casts doubts on recent findings about a positive effect of health on education. This is because health raises the marginal return on quality and quantity, resulting in an ambiguous effect on the accumulation of human capital. We conclude that longevity and health have had a minor effect, if any, on the transition from stagnation to growth via investment in education.

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File URL: http://econwpa.repec.org/eps/ge/papers/0507/0507001.pdf
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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0507001.

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Length: 22 pages
Date of creation: 04 Jul 2005
Date of revision:
Handle: RePEc:wpa:wuwpge:0507001
Note: Type of Document - pdf; pages: 22
Contact details of provider: Web page: http://econwpa.repec.org

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