Abstract
The purpose of this paper is to test the effect of human capital on Brazilian economic growth through the factor accumulation channel and the total factor productivity channel. We used new human capital measures, covering the period from 1996 to 2015. We used the two-step SYS-GMM method, with standard finite sample error correction and principal components analysis for the control of the proliferation of instruments. The results show that basic and advanced human capital have a positive impact on economic growth through both channels, being the effect of greater magnitude through the factor accumulation channel.
Highlights
The theoretical models of economic growth highlighted the importance of human capital from the perspective of obtaining education (Nelson & Phelps, 1966; Lucas, 1988; Becker, Murphy, & Tamura, 1990; Mulligan & Sala-i-Martin, 1993). Barro and Lee (2013) find a positive and significant effect of workers’ schooling, measured in§Universidade Federal de Pelotas (UFPel), Programa de Pós-Graduação em Organizações e Mercados (PPGOM) e Departamento de Economia
Estimates from (1) to (3) use wages based on the education of the graduates of elementary school, high school and higher education (HC) as a proxy for human capital
We propose the use of measures of human capital denominated “wages based on the disaggregated education of the graduates”, that is to say, basic education, for the average wages of the graduating students of primary and secondary school (HC_bh) and advanced education, for the average of wages of the graduating students of higher education (HC_ah)
Summary
The theoretical models of economic growth highlighted the importance of human capital from the perspective of obtaining education (Nelson & Phelps, 1966; Lucas, 1988; Becker, Murphy, & Tamura, 1990; Mulligan & Sala-i-Martin, 1993). §Universidade Federal de Pelotas (UFPel), Programa de Pós-Graduação em Organizações e Mercados (PPGOM) e Departamento de Economia. Rua Gomes Carneiro no 1, 4o andar, Departamento de Economia, Pelotas, RS, CEP 96010-610, Brasil.
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