Endogenous growth and human capital accumulation in a data economy

Qing Chang, Mengtao Wu and Longtian Zhang

Structural Change and Economic Dynamics, 2024, vol. 69, issue C, 298-312

Abstract: We build an endogenous growth model featuring a new mode of human capital accumulation in a data economy. Data are generated as the byproducts of economic activities and then used by consumers for human capital accumulation apart from education. Although we find similar growth patterns compared with those in the related literature, economic growth is further accelerated by the new use of data factor. Quantitative analyses suggest that although the accumulation of human capital is promoted by the increasing importance of data, this promotion is not unlimited since data may over-absorb resources and crowd out education. In the transition dynamics, we see that consumers suffer temporary welfare loss. However, as data become a key factor in human capital accumulation, welfare ultimately increases. Our paper provides a first view of the effect of the data factor in the process of human capital accumulation.

Keywords: Data economy; Data factor; Human capital accumulation; Endogenous growth model (search for similar items in EconPapers)
JEL-codes: O33 O38 O41 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:69:y:2024:i:c:p:298-312

DOI: 10.1016/j.strueco.2023.12.015

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