Does Longevity Cause Growth?

21 Pages Posted: 24 Jun 2005

See all articles by Moshe Hazan

Moshe Hazan

Monash University; Centre for Economic Policy Research (CEPR)

Hosny Zoabi

New Economic School (NES)

Date Written: February 2005

Abstract

This article challenges conventional wisdom by arguing that greater longevity cannot explain the significant accumulation of human capital during the transition from stagnation to growth. This is because greater longevity raises children's future income proportionally at all levels of education, leaving the relative return between quality and quantity unaffected. This result is consistent with historical evidence that longevity began to increase long before education did. Our theory also casts doubts on recent findings about a positive effect of health on education. This is because health raises the marginal return on quality and quantity, resulting in an ambiguous effect on the accumulation of human capital. We conclude that longevity and health have had a minor effect, if any, on the transition from stagnation to growth via investment in education.

Keywords: Longevity, health, education, fertility, growth

JEL Classification: I10, I20, J10, O11, O40

Suggested Citation

Hazan, Moshe and Zoabi, Hosny, Does Longevity Cause Growth? (February 2005). Available at SSRN: https://ssrn.com/abstract=751985

Moshe Hazan (Contact Author)

Monash University ( email )

Melbourne
Australia

HOME PAGE: http://www.moshehazan.net/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Hosny Zoabi

New Economic School (NES) ( email )

100A Novaya Street
Moscow, Skolkovo 143026
Russia

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