Trading Population for Productivity: Theory and Evidence
Brown University - Department of Economics; Centre for Economic Policy Research (CEPR); Massachusetts Institute of Technology (MIT) - School of Humanities, Arts, and Social Sciences, Department of Economics
Royal Holloway, University of London
CEPR Discussion Paper No. DP6678
This research argues that the differential effect of international trade on the demand for human capital across countries has been a major determinant of the distribution of income and population across the globe. In developed countries the gains from trade have been directed towards investment in education and growth in income per capita, whereas a significant portion of these gains in less developed economies have been channelled towards population growth. Cross-country regressions establish that indeed trade has positive effects on fertility and negative effects on education in non-OECD economies, while inducing fertility decline and human capital formation in OECD economies.
Number of Pages in PDF File: 44
Keywords: Demographic Transition, Growth, Human Capital, International Trade
JEL Classification: F11, F43, J10, N30, O40working papers series
Date posted: June 9, 2008
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