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Growth and heterogeneity of human capital: effects of the expansion of higher education on the income increase in Brazilian municipalities

Leonardo Andrade Rocha, Napiê Galvê Araújo Silva, Carlo Alano Soares de Almeida, Denison Murilo de Oliveira and Kaio César Fernandes

Revista CEPAL, 2020

Abstract: This study analyses the effects of the expansion of the highly skilled labour force (higher education) on the per capita income increase in Brazilian municipalities. The results show that a larger highly educated labour force translates into stronger growth in the most developed municipalities with fewer opportunity costs, measured by wage differences. The reduction of regional inequalities fostered by the expansion of higher education over the past 15 years will become sustainable if the increase in the skill supply is accompanied by a rise in demand, so the opportunity costs between factors are reduced and the skill premium grows.

Keywords: RECURSOS HUMANOS; MANO DE OBRA; TRABAJADORES CALIFICADOS; GOBIERNO MUNICIPAL; INGRESOS; DESIGUALDADES REGIONALES; CRECIMIENTO ECONOMICO; HUMAN RESOURCES; MANPOWER; SKILLED WORKERS; MUNICIPAL GOVERNMENT; INCOME; REGIONAL DISPARITIES; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: E24 O43 Q55 R11 (search for similar items in EconPapers)
Date: 2020-08-31
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Persistent link: https://EconPapers.repec.org/RePEc:ecr:col070:46589

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