Education or Just Creativity: What Matters Most for Economic Performance?

CRENoS Working Paper No. 2010/31

31 Pages Posted: 16 Jan 2011

See all articles by Emanuela Marrocu

Emanuela Marrocu

Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Raffaele Paci

University of Cagliari - Centre for North South Economic Research (CRENOS)

Date Written: December 2010

Abstract

There is a large consensus among researchers on the positive role played by human capital on economic performances although the debate on its measurement (education or creativity) is still open. This paper aims to disentangle this issue by proposing a disaggregation of human capital into three non-overlapping categories. Using a spatial error model to account for spatial dependence, we assess the concurrent effect of the human capital indicators on total factor productivity for the EU27 regions. Our results indicate that the highly educated creative group is the most relevant one in explaining production efficiency while the other two categories - non creative graduates and bohemians - exhibit negligible effects. Moreover, a relevant influence is exerted by technological capital and by the level of tolerance providing robust evidence that a highly educated, innovative, open and culturally diverse environment is becoming more and more central for productivity enhancements.

Suggested Citation

Marrocu, Emanuela and Paci, Raffaele, Education or Just Creativity: What Matters Most for Economic Performance? (December 2010). CRENoS Working Paper No. 2010/31. Available at SSRN: https://ssrn.com/abstract=1739726 or http://dx.doi.org/10.2139/ssrn.1739726

Emanuela Marrocu

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY
+39.0706753764 (Phone)
+30.0706753760 (Fax)

Raffaele Paci (Contact Author)

University of Cagliari - Centre for North South Economic Research (CRENOS) ( email )

Viale S. Ignazio, 78
Cagliari I-09123
Italy
+70-6753764 (Phone)
+70-6753760 (Fax)

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