The role of human capital in economic growth revisited

Dipanwita Sarkar ()

Applied Economics Letters, 2007, vol. 14, issue 6, 419-423

Abstract: Benhabib and Spiegel (1994) examine the role of human capital in the development process empirically using a theory-driven specification rather than the standard production function approach. While they find evidence of a positive impact of human capital on income growth, their result is not robust to the inclusion of inequality as an additional covariate. Using an alternate dataset and different measures of inequality, we find robust support for the hypothesis that human capital matters even when we account for the adverse effect of income inequality on growth.

Date: 2007
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DOI: 10.1080/13504850500447323

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