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EconNet: Human Capital, Educational Levels and Growth

Date: 02 Jul 2015

Time: 12:00 PM

Location: 1300 New York Ave., NW, Washington, DC - Room SE-1035, United States

Prior registration required (link on the left)
*Bring your lunch*

Title: Human Capital, Educational levels and Growth

Presenter: Michel Strawczynski (Hebrew University of Jerusalem)

Abstract: This paper analyzes the transition of countries between educational levels in the period 1970-2010 in order to assess the contribution of human capital to the increase of GDP per employee. Using a sample of 41 countries that includes both developing and developed economies, we show that the transition from primary or no schooling, to significant levels of higher education is a crucial factor in explaining growth. By using a panel cointegration framework and a simulation that quantifies the contribution of education to the increase in GDP per- employee we show that escalating the educational ladder can make the difference between remaining a developing economy and becoming a developed one. According to our analysis the reform implemented by Asian Tigers, which implied a transition from primary and secondary education to tertiary education, allowed these countries to reach the level that prevails in developed economies. In terms of GDP per- employee, this pattern dominates the one performed by developing countries, where educational reform was based on a transition from analphabetism or primary school to secondary education.

EconNet is the technical seminar series of the IDB’s Research Department. The series consist of brown-bag seminars at which an invited researcher presents his or her latest research findings on development issues relevant to Latin America and the Caribbean. EconNet takes place every Thursday from 12 noon to 1:30 p.m.

A joint initiative of the Research Department and the Knowledge and Learning Sector of the IDB

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