Micro Evidence on Human Capital as the Engine of Growth

Philip Trostel

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This study examines a crucial assumption in much of the recent work on endogenous growth, namely, constant returns to scale in the production of human capital. A simple model is constructed to show that the returns to scale in human capital production can be inferred from the relationship between the wage rate and years of schooling. A large international micro dataset is used to estimate this relationship. The empirical evidence is decisive. There are decreasing returns to scale in human capital production; that is, the micro-level evidence is not supportive of endogenous growth driven by human capital accumulation.

Keywords: GROWTH RATE; PRODUCTION; HUMAN CAPITAL (search for similar items in EconPapers)
JEL-codes: I21 J24 O41 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2000
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https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/twerp555.pdf

Related works:
Working Paper: Micro Evidence on Human Capital as the Engine of Growth (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:555

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