Why Doesn't Human Capital Accumulation Always Contribute to Growth?

20 Pages Posted: 20 Mar 2000

See all articles by Jean-Claude Berthelemy

Jean-Claude Berthelemy

Université Paris I Panthéon-Sorbonne - Department of Economics

Sebastien Dessus

World Bank - West Bank and Gaza Resident Mission

Date Written: January 2000

Abstract

Recent empirical studies question the conventional wisdom about the importance of education for growth. We test the hypothesis that this may be the case if human capital is diverted from growth-promoting activities to rent-seeking activities that are socially useful to reduce the negative effects of distortions. We estimate conditional convergence equations on panel data in which the elasticity of human capital depends on the level of distortions. Our results, for a sample of eighty countries from 1960 to 1990, strongly suggest that the more countries erect barriers to trade and constrain civil liberties, the less human capital accumulation contributes to growth.

JEL Classification: E20, J24, O15

Suggested Citation

Berthelemy, Jean-Claude and Dessus, Sebastien, Why Doesn't Human Capital Accumulation Always Contribute to Growth? (January 2000). Available at SSRN: https://ssrn.com/abstract=204828 or http://dx.doi.org/10.2139/ssrn.204828

Jean-Claude Berthelemy

Université Paris I Panthéon-Sorbonne - Department of Economics ( email )

12 place du Panthéon
Paris, IL
France

Sebastien Dessus (Contact Author)

World Bank - West Bank and Gaza Resident Mission ( email )

P.O. BOX 54842
Jerusalem
Israel
+972 2 236 65 49 (Phone)
+972 2 236 65 43 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
305
Abstract Views
1,631
rank
100,847
PlumX Metrics