The role of education supply in economic growth and the dynamics of skills

Vincent Barthelemy and Philippe Michel
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Vincent Barthelemy: GREQAM, Université de la Méditerranée

No 1999023, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper analyzes the role of the structure of skills in economic development through investment in human capital. With a lack of credit market for education and the presence of indivisibilities in investment in human capital as well as of congestion in the educational system, the initial distribution of skills affects aggregate output and investment both in the short and the long run, as there are multiple balanced growth paths. This paper provides an additional explanation for the persistent differences in per-capita output across countries. Moreover, it shows that cross-country differences in macroeconomic adjustment to educational policies can be attributed, among other factors, to differences in the distribution of skills.

JEL-codes: I21 I28 O11 O4 (search for similar items in EconPapers)
Date: 1999-04-01
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Related works:
Working Paper: The Role of Education Supply in Economic Growth and the Dynamics of Skills (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1999023

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