Lecture10_fall2009

Lecture10_fall2009 - Lecture 10: Education and the human...

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1 Lecture 10: Education and the human capital century • Can differences in education levels explain cross-country comparisons in development? • Three revolutions within US : Common school; high school movement; college and beyond . • US exceeds Europe in mass secondary schooling. Why? Decentralization and mobility. Education and growth in international comparison
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2 The economics of convergence • In theory, poor countries should grow faster than rich ones because they can adopt the cutting- edge technologies and effective institutions developed by the rich. • But, we saw that: Growth rates: poor-rich > rich-rich > poor Convergence club Why do the poor lag behind? 100% HS enrollment 80 50% HS enrollment 10 1970 GDP per capita ($000; 1985) Annual growth in per capita income, in % (1970-1990) Convergence clubs correspond to levels of educational attainment
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3 The concept of “human capital” • Technology transfer requires knowledgeable managers and engineers who are able to operate new machines or production practices borrowed from the leader. • Therefore, a country’s ability to learn from the leader is a function of its stock of “human capital.” • Human capital can be acquired through formal schooling, on-the-job training, etc. 6 7 8 9 10 Ln (GDP)/capita 1990, PPP $ 0 20 40 60 80 100 Gross Secondary Enroll. Rate, 1990 BDI BEN CAF CIV CMR COG COM CPV DZA EGY GHA GIN GMB HVO KEN LSO MDG MLI MOZ MRT MUS MWI NAM NGA RWA SDN SEN SLE TCD TGO TUN UGA ZAF ZMB ZWE BLZ CAN CRI
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Lecture10_fall2009 - Lecture 10: Education and the human...

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