×

Threshold effects of human capital: schooling and economic growth. (English) Zbl 1396.91468

Summary: Empirical growth studies have often found average years of schooling to be unrelated with economic growth. This note shows that the significant positive effect of schooling can only be realized after an economy crosses a threshold level of development.

MSC:

91B62 Economic growth models
PDFBibTeX XMLCite
Full Text: DOI Link

References:

[1] Arellano, M.; Bover, O., Another look at the instrumental variable estimation of error-components models, J. Econometrics, 68, 1, 29-51, (1995) · Zbl 0831.62099
[2] Barro, R. J.; Lee, J. W., A new data set of educational attainment in the world, 1950-2010, J. Dev. Econ., 104, 184-198, (2013)
[3] Benhabib, J.; Spiegel, M. M., The role of human capital in economic development evidence from aggregate cross-country data, J. Monetary Econ., 34, 2, 143-173, (1994)
[4] Bick, A., Threshold effects of inflation on economic growth in developing countries, Econom. Lett., 108, 2, 126-129, (2010)
[5] Bose, N.; Capasso, S.; Murshid, A. P., Threshold effects of corruption: theory and evidence, World Dev., 36, 7, 1173-1191, (2008)
[6] Caner, M.; Hansen, B. E., Instrumental variable estimation of a threshold model, Econometric Theory, 20, 05, 813-843, (2004) · Zbl 1071.62115
[7] Cohen, D.; Soto, M., Growth and human capital: good data, good results, J. Econ. Growth, 12, 1, 51-76, (2007) · Zbl 1157.91406
[8] de la Fuente, A.; Doménech, R., Human capital in growth regressions: how much difference does data quality make?, J. Eur. Econ. Assoc., 4, 1, 1-36, (2006)
[9] Hansen, B. E., Threshold effects in non-dynamic panels: estimation, testing, and inference, J. Econometrics, 93, 2, 345-368, (1999) · Zbl 0941.62127
[10] Hansen, B. E., Sample splitting and threshold estimation, Econometrica, 68, 3, 575-603, (2000) · Zbl 1056.62528
[11] Hanushek, E. A.; Kimko, D. D., Schooling, labor-force quality, and the growth of nations, Amer. Econ. Rev., 1184-1208, (2000)
[12] Hanushek, E.A., Wößmann, L., 2007. The role of education quality for economic growth, World Bank Policy Research Working Paper No. 4122.
[13] Henry, M.; Kneller, R.; Milner, C.; Girma, S., Do natural barriers affect the relationship between trade openness and growth?, Oxford Bull. Econ. Stat., 74, 1, 1-19, (2012)
[14] Khan, M. S.; Senhadji, A. S., Threshold effects in the relationship between inflation and growth, IMF Staff Pap., 48, 1-21, (2001)
[15] Kremer, S.; Bick, A.; Nautz, D., Inflation and growth: new evidence from a dynamic panel threshold analysis, Empir. Econom., 44, 2, 861-878, (2013)
[16] Krueger, A. B.; Lindahl, M., Education for growth: why and for whom?, J. Econom. Lit., 39, 4, 1101-1136, (2001)
[17] Pritchett, L., Where has all the education gone?, World Bank Econ. Rev., 15, 3, 367-391, (2001)
[18] Rogers, M. L., Directly unproductive schooling: how country characteristics affect the impact of schooling on growth, Eur. Econ. Rev., 52, 2, 356-385, (2008)
[19] Roodman, D., A note on the theme of too many instruments, Oxford Bull. Econ. Stat., 71, 1, 135-158, (2009)
[20] Schündeln, M.; Playforth, J., Private versus social returns to human capital: education and economic growth in India, Eur. Econ. Rev., 66, 266-283, (2014)
[21] Temple, J., A positive effect of human capital on growth, Econom. Lett., 65, 1, 131-134, (1999) · Zbl 1007.91522
[22] Wilcox Rand, R., Introduction to robust estimation and hypothesis testing, (2005), Elsevier Academic Press · Zbl 1113.62036
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.