Optimal Schooling for Economic Growth

Kazuyuki Sasakura
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Kazuyuki Sasakura: Graduate School of Economics, Waseda University

No 2302, Working Papers from Waseda University, Faculty of Political Science and Economics

Abstract: It goes without saying that education matters to promote economic growth. To examine the importance of education or schooling in economic growth, the Uzawa-Lucas model is the most popular in economics. It regards the accumulation of human capital through schooling (i.e., going to school) as the engine of economic growth. The current paper uses a generalized version of the Uzawa-Lucas model and studies the relationship between schooling-related parameters and economic growth. It is concluded that the growth rate of a macroeconomy becomes higher if workers become more patient, population grows faster, the rate of human capital depreciation becomes smaller, or the potentially maximum growth rate of human capital becomes bigger. These results may be expected intuitively. But the effect of the schooling-time elasticity of the growth rate of human capital (i.e., the exponent of the learning function) is not clear. It is shown that it depends on some conditions on schooling time.

Keywords: Education; Schooling; Economic Growth; Generalized Uzawa-Lucas Model (search for similar items in EconPapers)
Pages: 18 pages
Date: 2023-06
New Economics Papers: this item is included in nep-gro and nep-mfd
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