Growth and Cultural Preference for Education
Angus Chu (),
Yuichi Furukawa () and
MPRA Paper from University Library of Munich, Germany
In this note, we explore the implications of cultural preference for education in an innovation-driven growth model that features an interaction between endogenous human capital accumulation and technological progress. Parents invest in children's education partly due to the preference for their children to be educated. We consider a preference parameter that measures the degree of this parental or cultural preference for education. We find that a higher degree of parental preference for education increases human capital, which is conducive to innovation, but the increase in education investment also crowds out resources for R&D investment. As a result, a stronger cultural preference for education has an inverted-U effect on the steady-state equilibrium growth rate. We also analytically derive the complete transitional path of the equilibrium growth rate and find that an increase in the degree of education preference has an initial negative effect on economic growth.
Keywords: economic growth; human capital; education; culture (search for similar items in EconPapers)
JEL-codes: E24 O31 O41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cul, nep-edu, nep-gro, nep-ino, nep-knm and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:66883
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