The Role of Human Capital in Economic Growth: The Case of Spain

27 Pages Posted: 30 Jan 2006

See all articles by Enric Fernandez

Enric Fernandez

University of Chicago

Paolo Mauro

International Monetary Fund (IMF)

Date Written: January 2000


This study constructs an index of human capital for the Spanish labor force over the past two decades and projects it over the next decade on the basis of likely demographic developments. The methodology considers both educational attainment resulting from formal schooling and improvements in workers` productivity resulting from experience, or learning by doing. Furthermore, it allows for the fact that people with higher education accumulate human capital through learning by doing at a faster pace than less educated workers or, in other words, that the full returns to formal schooling are realized with a lag of many years. Using this index, a growth accounting exercise is conducted to estimate the impact of human capital accumulation on economic growth over the past two decades. Finally, potential output growth is projected over the next few years, taking into account the impact of human capital accumulation.

Keywords: Human capital, economic growth, Spain

JEL Classification: O47, I29

Suggested Citation

Fernandez, Enric and Mauro, Paolo, The Role of Human Capital in Economic Growth: The Case of Spain (January 2000). IMF Working Paper No. 00/8. Available at SSRN:

Enric Fernandez (Contact Author)

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Paolo Mauro

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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