Human capital in economic development: from labour productiviey to macroeconomic impact

Kristinn Hermannsson and Patrizio Lecca

No 1501, Working Papers from University of Strathclyde Business School, Department of Economics

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.

Keywords: human capital; higher education; labour markets; trade; Malawi (search for similar items in EconPapers)
JEL-codes: E17 F16 I25 O15 O22 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2015-02
New Economics Papers: this item is included in nep-hrm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published

Downloads: (external link)
http://www.strath.ac.uk/media/1newwebsite/departme ... sionpapers/15-01.pdf (application/pdf)

Related works:
Journal Article: Human Capital in Economic Development: From Labour Productivity to Macroeconomic Impact (2016)
Working Paper: Human Capital in Economics Development: From Labour Productivity to Macroeconomic Impact (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:1501

Access Statistics for this paper

More papers in Working Papers from University of Strathclyde Business School, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Kirsty Hall ().