Human Capital and Macroeconomic Development : A Review of the Evidence

The role of human capital in facilitating macroeconomic development is at the center of both academic and policy debates. Through the lens of a simple aggregate production function, human capital might increase output per capita by directly entering in the production process, incentivizing the accum...

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Main Author:	Rossi, Federico
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2022
Subjects:	HUMAN CAPITAL DEVELOPMENT ECONOMIC GROWTH INTERGENERATIONAL INCOME DISTRIBUTION LABOR PRODUCTIVITY EMPLOYMENT DEVELOPMENT ACCOUNTING QUANTITATIVE MODEL CROSS-COUNTRY REGRESSION EDUCATIONAL ATTAINMENT
Online Access:	http://hdl.handle.net/10986/36811

id	okr-10986-36811
recordtype	oai_dc
spelling	okr-10986-368112022-01-12T05:10:40Z Human Capital and Macroeconomic Development : A Review of the Evidence Rossi, Federico HUMAN CAPITAL DEVELOPMENT ECONOMIC GROWTH INTERGENERATIONAL INCOME DISTRIBUTION LABOR PRODUCTIVITY EMPLOYMENT DEVELOPMENT ACCOUNTING QUANTITATIVE MODEL CROSS-COUNTRY REGRESSION EDUCATIONAL ATTAINMENT The role of human capital in facilitating macroeconomic development is at the center of both academic and policy debates. Through the lens of a simple aggregate production function, human capital might increase output per capita by directly entering in the production process, incentivizing the accumulation of complementary inputs, and facilitating the adoption of new technologies. This paper discusses the advantages and limitations of three approaches that have been used to evaluate the empirical importance of these channels: cross-country regressions, development accounting, and quantitative models. The key findings in the literature are reviewed and some of them are replicated using updated data. The bulk of the evidence suggests that human capital is an important determinant of cross-country income gaps, especially when its measurement is broadened to go beyond simple proxies of educational attainment. The paper concludes by highlighting policy implications and promising avenues for future work. 2022-01-11T18:27:37Z 2022-01-11T18:27:37Z 2020-07 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/36811 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	HUMAN CAPITAL DEVELOPMENT ECONOMIC GROWTH INTERGENERATIONAL INCOME DISTRIBUTION LABOR PRODUCTIVITY EMPLOYMENT DEVELOPMENT ACCOUNTING QUANTITATIVE MODEL CROSS-COUNTRY REGRESSION EDUCATIONAL ATTAINMENT
spellingShingle	HUMAN CAPITAL DEVELOPMENT ECONOMIC GROWTH INTERGENERATIONAL INCOME DISTRIBUTION LABOR PRODUCTIVITY EMPLOYMENT DEVELOPMENT ACCOUNTING QUANTITATIVE MODEL CROSS-COUNTRY REGRESSION EDUCATIONAL ATTAINMENT Rossi, Federico Human Capital and Macroeconomic Development : A Review of the Evidence
description	The role of human capital in facilitating macroeconomic development is at the center of both academic and policy debates. Through the lens of a simple aggregate production function, human capital might increase output per capita by directly entering in the production process, incentivizing the accumulation of complementary inputs, and facilitating the adoption of new technologies. This paper discusses the advantages and limitations of three approaches that have been used to evaluate the empirical importance of these channels: cross-country regressions, development accounting, and quantitative models. The key findings in the literature are reviewed and some of them are replicated using updated data. The bulk of the evidence suggests that human capital is an important determinant of cross-country income gaps, especially when its measurement is broadened to go beyond simple proxies of educational attainment. The paper concludes by highlighting policy implications and promising avenues for future work.
format	Journal Article
author	Rossi, Federico
author_facet	Rossi, Federico
author_sort	Rossi, Federico
title	Human Capital and Macroeconomic Development : A Review of the Evidence
title_short	Human Capital and Macroeconomic Development : A Review of the Evidence
title_full	Human Capital and Macroeconomic Development : A Review of the Evidence
title_fullStr	Human Capital and Macroeconomic Development : A Review of the Evidence
title_full_unstemmed	Human Capital and Macroeconomic Development : A Review of the Evidence
title_sort	human capital and macroeconomic development : a review of the evidence
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2022
url	http://hdl.handle.net/10986/36811
_version_	1764485942947610624

Human Capital and Macroeconomic Development : A Review of the Evidence

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