Human Capital in Economic Development : From Labour Productivity to Macroeconomic Impact

Hermannsson, Kristinn and Lecca, Patrizio (2015) Human Capital in Economic Development : From Labour Productivity to Macroeconomic Impact. Discussion paper. University of Strathclyde, Glasgow.

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    Abstract

    Micro-econometric evidence reveals high private returns to education, most prominently in low-income countries. However, it is disputed to what extent this translates into a macro-economic impact. This paper projects the increase in human capital from higher education in Malawi and uses a dynamic applied general equilibrium model to estimate the resulting macroeconomics impact. This is contingent upon endogenous adjustments, in particular how labour productivity affects competitiveness and if this in turn stimulates exports. Choice among commonly applied labour market assumptions and trade elasticities results in widely different outcomes. Appraisal of such policies should consider not only the impact on human capital stocks, but also adjustments outside the labour market.

    Author(s):Hermannsson, Kristinn and Lecca, Patrizio
    Item type:Monograph(Discussion paper)
    ID code:68330
    Notes:Published as a paper within the Discussion Papers in Economics, No. 15-01 (2015)
    Keywords:human capital, higher education, labour markets, trade, Malawi, Regional economics. Space in economics, Education, Economics, Econometrics and Finance(all), Education
    Subjects:Social Sciences > Communities. Classes. Races > Regional economics. Space in economics
    Education
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:11 Jun 2019 09:04
    Last modified:28 Jul 2019 00:18
    URI:https://strathprints.strath.ac.uk/id/eprint/68330
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