Human capital and growth in japan since 1970: converging to the steady state in a 1% world

Theodore Breton ()

No 12433, Documentos de Trabajo de Valor Público from Universidad EAFIT

Abstract: Annual growth in GDP/adult in Japan has declined from over 10% in 1969 to an average of 1% since the financial crisis in 1991. I show that a dynamic Solow growth model, augmented with human capital, weekly labor-hours, and oil prices, explains Japan’s annual growth rates from 1969 to 2007 as conditional convergence to a steady-state rate of 1%/year. Each additional year of average adult schooling attainment raised GDP/adult directly and indirectly by 20 percent, and weekly hours worked had an output elasticity of 0.5. The marginal product of schooling was double the marginal product of physical capital.

Keywords: Japan; Human Capital; Schooling; Productivity; Economic Growth; Convergence (search for similar items in EconPapers)
JEL-codes: I25 O41 O53 (search for similar items in EconPapers)
Pages: 40
Date: 2014-11-20
New Economics Papers: this item is included in nep-gro, nep-his and nep-hrm
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Persistent link: https://EconPapers.repec.org/RePEc:col:000122:012433

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