Crises and human capital accumulation

Freddy Heylen () and Lorenzo Pozzi

Canadian Journal of Economics, 2007, vol. 40, issue 4, pages 1261-1285

Abstract: This paper studies the effects of crises on human capital formation. Theoretically, a crisis undermines total factor productivity, which reduces the return to working and to accumulating physical capital. If the crisis is temporary, young agents will study now and work later. Human capital rises. To test our model we rely on inflation crises as our main empirical proxy. Using GMM panel procedures, our analysis for 86 countries in 1970-2000 confirms the positive effects of crises on human capital. Our main findings survive several robustness tests.

JEL-codes: E31 D90 (search for similar items in EconPapers)
Date: 2007

Downloads: (external link)
http://economics.ca/cgi/xms?jab=v40n4/CJEv40n4p1261.pdf Full text (application/pdf)
Available to subscribers only. Alternative access through JSTOR and Ingenta.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://economics.ca/en/membership.php

Access Statistics for this article

Canadian Journal of Economics is edited by Dwayne Benjamin

More articles in Canadian Journal of Economics from Canadian Economics Association
Address: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office CIREQ-C.R.D.E., Université de Montréal C.P. 6128, succursale Centre-ville Montréal, Québec, H3C 3J7, Canada
Contact information at EDIRC.
Series data maintained by Prof. Werner Antweiler ().