Diagnosing human capital as a binding constraint to growth : tests, symptoms, and prescriptions /
Santos, Miguel Angel(Government economist),author.
Hani, Farah,author.
The empirical literature on the contributions of human capital investments to economic growth shows mixed results. While evidence from Organization for Economic Co-operation and Development (OECD) countries demonstrates that human capital accumulation is associated with growth accelerations, the substantial efforts of developing countries to improve access to and quality of education, as a means for skill accumulation, did not translate into higher income per capita. In this Element, we propose a framework, building on the principles of Growth Diagnostics, to enable practitioners to determine whether human capital investments are a priority for a country's growth strategy. We then discuss and exemplify different tests to diagnose human capital in a place, drawing on the Harvard Growth Lab's experience in different development contexts, and discuss various policy options to address skill shortages--back cover.
Includes bibliographical references (pages [58]-62).
Introduction -- 1. What is human capital? -- 2. Testing for human capital as a binding constraint to growth -- 3. From diagnostic symptoms to the syndrome and therapeutics -- Conclusion -- Appendix 1: Mincer regression for Mexico and Chiapas -- Appendix 2: Incorporating quality in mincer regression -- Appendix 3: Wage premiums by industry and occupation -- Appendix 4: Industry factor intensity and relationship to country exports -- References.
The empirical literature on the contributions of human capital investments to economic growth shows mixed results. While evidence from Organization for Economic Co-operation and Development (OECD) countries demonstrates that human capital accumulation is associated with growth accelerations, the substantial efforts of developing countries to improve access to and quality of education, as a means for skill accumulation, did not translate into higher income per capita. In this Element, we propose a framework, building on the principles of Growth Diagnostics, to enable practitioners to determine whether human capital investments are a priority for a country's growth strategy. We then discuss and exemplify different tests to diagnose human capital in a place, drawing on the Harvard Growth Lab's experience in different development contexts, and discuss various policy options to address skill shortages--back cover.
Economic development.
Human capital.