A structural model of human capital and manufacturing sector change (original) (raw)
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Working Papers, 1992
Using crosscountry estimates of physical and human capital stocks, we run the growth accounting regressions implied by a CobbPDouglas aggregate production function. Our results indicate that human capital enters insignificantly in explaining per capita growth rates. We next specify an alternative model in which the growth rate of total factor productivity depends on a nation's human capital stock level. Tests of this specification do indicate a positive role for human capital.
A wage based measure of regional aggregate human capital
2004
The role of the accumulation of human capital to per capita income growth has been sharply debated among economists and policy makers. One open question of this debate is how to measure human capital. The standard approach is to use the average years of educa-* Financial support by the Portuguese Foundation for Science and Technology (grant POCTI/47624/2002) is gratefully acknowledge. 1 of human capital accumulation are unmeasured. Also, it is assumed that the productivity differentials among workers with different levels of schooling are proportional to their years of education. In order to solve these problems, we develop the Mulligan and Sala-i-Martin's measure of human capital based, on labour income. This measure has some nice properties: is consistent with variable elasticities of substitution across types of workers, and does not impose all workers with the same amount of education to have the same amount of skill. It is also allowed for changes in the relative productivities over time and across different economies.We compute the index at the firm level and, finally, and we compare the evolution of our index with the evolution of average years of education for the Portuguese regions, highlighting the shortcomings of the latter measure of human capital.
The manufacturing sector has been a large contribution towards promoting economic growth, generating employment, competitiveness and trade development in the world. Human capital plays a significant role in the growth of the manufacturing sector, while its determination on manufacture sector growth in Pakistan has remained unexplored in literature. The main objective of this study is to define the proxy role of human capital formation (e.g., secondary school enrolment, infant mortality rate, and life expectancy) and their direct impact on manufacturing sectors in Pakistan for the period of 1972-2015. An autoregressive distributed lag (ARDL) bounds testing approach was applied to investigate and co-integrate the causality link between the study variables. These tests put a spotlight on the long-run connection among the variables, while in addition, the results revealed that human capital, employed labor force, gross fixed capital formation, inflation rate, energy consumption, tax on GDP, domestic credit had a positive impact on the manufacturing growth in Pakistan.
MEASURING HUMAN CAPITAL AND ITS EFFECTS ON WAGE GROWTH
Journal of Economic Surveys, 2010
Ever since Mincer, years of labour market experience were used to approximate individual's general human capital, while years of seniority were used to approximate job-specific human capital. This specification is restrictive because it assumes that starting wages at a new job depend only on job market experience. In this paper, I investigate the effects of human capital on wage growth by using a more flexible specification of the wage equation, which allows for a rich set of information on past employment spells to affect the starting wages. In addition, I endogenize the labour mobility decision. In order to illuminate the effects of human capital accumulation patterns on wage growth, I compare counterfactual career paths for representative individuals.
Human capital and growth revisited: a microeconomic approach.
mibes.teilar.gr
The positive effects of human capital on economic growth have long been recognized and tested, but mostly at the macroeconomic level, while limited emphasis has been placed on the microeconomic side. In this study we examine the impact of human capital on growth rates at the firm level. Using data from Greek manufacturing and panel data techniques, we estimate an empirical model where human capital appears as one of the independent variables. Our results suggest that, after controlling for other variables such as firm size, investment, efficiency etc., human capital has a positive and significant impact on the growth rates of firms. Keywords: Education; Human Capital; Growth JEL Classification: D21, J24, L6
Economic growth, human capital and structural change: A dynamic panel data analysis
Research Policy, 2016
Human capital is identified as one of the main determinants of economic growth and plays an important role in the technological progress of countries. Nevertheless, existing studies have to some extent neglected the importance of human capital in the growth process via the interaction it can have with a country's industrial specialization. Additionally, the emphasis is mainly placed on supply-side determinants, while demand-side factors are neglected, particularly the relevance of the processes of structural change. Thus, using a growth model which integrates variables from both the supply side and demand side, we assess the direct and indirect effects of human capital on economic growth, including in the latter the interaction of human capital with the industrial specialization of countries. Based on dynamic panel data estimations, we found that human capital and the countries' productive specialization dynamics are crucial factors for economic growth. Moreover, the interaction between human capital and structural change in high knowledge-intensive industries impacts significantly on economic growth. However, the sign of this effect depends on the type of country and the period of analysis. Specifically, over a longer time span (1960-2011) and for more highly developed (OECD) countries, the impact of the interaction between human capital and structural change is positive. When we also include transition and Mediterranean countries over a shorter time period (1990-2011), we find that human capital significantly and positively impacts on the countries' economic growth but the effect of human capital via specialization in high-tech and knowledge-intensive activities is negative. The latter result indicates that the lack of industrial structures able to properly integrate highly educated individuals into the productive system leads countries to experience disappointing economic returns.
Human Capital and Endogenous Growth: Incorporating the Role of Unemployment in Determining Returns
Journal of Accounting and Finance in Emerging Economies
This study reported the returns to Human Capital in Pakistan. The main purpose of this study is to estimate the returns to human capital. In Pakistan, the level of output is dependent on manpower. Human Capital is a significant contributor in the way to betterment in the economic condition. In this study, time series data is used, and co-integration is applied for the empirical estimation. Gross Domestic Product (GDP), education, mortality, enrolment, unemployment, and age are the core variables of the research. Education has a positive impact on productivity. An increase in education level raises the female labor force participation in Pakistan. The presence of children decreases the early age participation in the labor market. The result shows that when the education level is increased, it boosts the economic activity, and the female labor force participation is the main reason that is increasing its likelihood. It is recommended that government should provide better facilities of...
Human Capital Composition and Economic Growth at a Regional Level.
IREA Working Papers, 2009
Human capital composition and economic growth at the regional level, Regional Studies. This paper analyses the impact of human capital composition on regional catch-up for Spain over the period 1960–1997. Empirical evidence shows that human capital has a non-linear impact on convergence at both NUTS-2 and NUTS-3 geographical disaggregation levels. Tertiary education drives regional catch-up, while the accumulation of non-technical education slows down this convergence. When one controls for the development stage of the regions, strong complementarities seem to arise between different types of skills. When closer to the frontier, the complementarities between tertiary education and secondary/vocational training drive the convergence process, while the impact of intermediate education is weak for regions at lower development stages.