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Human capital and innovation: a model of endogenous growth with a “skill-loss effect”

Author

Listed:
  • Silvia London

    (Universidad Nacional del Sur - Argentina - CONICET)

  • Wiston Adrian Risso

    (University of Sienna, Italy.)

  • Juan Gabriel Brida

    (School of Economics and Management, Free University of Bolzano Italy)

Abstract

The present paper argues that, in line with Nelson-Phelps (1966), there exist important complementaries among educational attainment, R and D activities (and their derived innovations) and economic growth, although subject to a “skill-loss effect” ( -effect), due to the presence of workers who have to perform jobs that require other capacities than the ones they have. Taking Redding's (1996) formal framework, the main result of our model suggests that the more distorted the labour market is, the stronger must be the investment in R and D necessary to at ain a positive economic growth rate.

Suggested Citation

  • Silvia London & Wiston Adrian Risso & Juan Gabriel Brida, 2008. "Human capital and innovation: a model of endogenous growth with a “skill-loss effect”," Economics Bulletin, AccessEcon, vol. 15(7), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-08o10001
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume15/EB-08O10001A.pdf
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    References listed on IDEAS

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    5. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
    6. Redding, Stephen, 1996. "The Low-Skill, Low-Quality Trap: Strategic Complementarities between Human Capital and R&D," Economic Journal, Royal Economic Society, vol. 106(435), pages 458-470, March.
    7. McCallum, Bennett T., 1984. "On low-frequency estimates of long-run relationships in macroeconomics," Journal of Monetary Economics, Elsevier, vol. 14(1), pages 3-14, July.
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    Cited by:

    1. Dalila Nicet-Chenaf & Eric Rougier, 2009. "Human capital and structural change: how do they interact with each other in growth?," Post-Print hal-00389040, HAL.
    2. Antonioli, Davide & Manzalini, Rocco & Pini, Paolo, 2011. "Innovation, workers skills and industrial relations: Empirical evidence from firm-level Italian data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 312-326, May.

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    More about this item

    Keywords

    endogenous growth;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C0 - Mathematical and Quantitative Methods - - General

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