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Skills and the Transition

In: Transition and Beyond

Author

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  • Simon Commander

Abstract

The empirical evidence of the link from human capital to growth has at times seemed elusive. Yet recent work suggests that the effect of schooling on the level of output can be quite substantial — Bassanini and Scarpetta (2001) estimate approximately 6 per cent for each additional year of schooling. Other work has explored whether there is an association between output growth and the mean stock of human capital per worker. This direction of work finds a robust link from years of schooling to total factor productivity (TFP) growth (see Benhabib and Spiegel, 1994; Dowrick, 2002). In other words, a more educated labor force can use ideas more productively.

Suggested Citation

  • Simon Commander, 2007. "Skills and the Transition," Studies in Economic Transition, in: Saul Estrin & Grzegorz W. Kolodko & Milica Uvalic (ed.), Transition and Beyond, chapter 5, pages 118-132, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-59032-8_6
    DOI: 10.1057/9780230590328_6
    as

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