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The accumulation of human capital: alternative methods and why they matter

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Author Info
Murat F. Iyigun
Ann L. Owen

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Abstract

We show how the ability to accumulate human capital through formal education and through a learning-by-doing process that occurs on the job affects the dynamic behavior of the human capital stock under a liquidity-constrained and a non-constrained case. When there are alternatives to formal schooling in the accumulation of human capital, investing resources in increasing school enrollment rates in low-income countries may not be the most efficient means of increasing the human capital stock. In addition, removal of liquidity constraints may not be sufficient to escape a development trap.

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Publisher Info
Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series International Finance Discussion Papers with number 551.

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Date of creation: 1996
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Handle: RePEc:fip:fedgif:551

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Related research
Keywords: Human capital;

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  1. Pritchett, Lant, 1996. "Where has all the education gone?," Policy Research Working Paper Series 1581, The World Bank. [Downloadable!]
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This page was last updated on 2009-10-15.

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