Mortality Decline, Human Capital Investment and Economic Growth

29 Pages Posted: 22 Feb 2003

See all articles by Sebnem Kalemli-Ozcan

Sebnem Kalemli-Ozcan

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Koc University, Graduate School of Business

Harl Edgar Ryder

Brown University - Department of Economics

David N. Weil

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

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Abstract

We examine the role of increased life expectancy in raising human capital investment during the process of economic growth. We develop a continuous time, overlapping generations model in which individuals make optimal schooling investment choices in the face of a constant probability of death. We present analytic results, followed by results from a calibrated version of the model using realistic estimates of the return to schooling. Mortality decline produces economically significant increases in schooling and consumption. Allowing schooling to vary endogenously produces a much larger response of consumption and capital to mortality decline than is observed when schooling is held fixed.

Suggested Citation

Kalemli-Ozcan, Sebnem and Ryder, Harl Edgar and Weil, David Nathan, Mortality Decline, Human Capital Investment and Economic Growth. Available at SSRN: https://ssrn.com/abstract=361461 or http://dx.doi.org/10.2139/ssrn.361461

Sebnem Kalemli-Ozcan (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Koc University, Graduate School of Business ( email )

Rumelifeneri Yolu
34450 Sar?yer
Istanbul, 34450
Turkey

Harl Edgar Ryder

Brown University - Department of Economics ( email )

Box B
Providence, RI 02912
United States

David Nathan Weil

Brown University - Department of Economics ( email )

Box B
Providence, RI 02912
United States
401-863-1754 (Phone)
401-863-1970 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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