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The Human Capital Transition and the Role of Policy

In: Handbook of Cliometrics

Author

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  • Ralph Hippe

    (European Commission, Joint Research Centre (JRC))

  • Roger Fouquet

    (National University of Singapore)

Abstract

Along with information and communication technology, infrastructure, and the innovation system, human capital is a key pillar of the knowledge economy with its scope for increasing returns. With this in mind, the purpose of this chapter is to investigate how industrialized economies managed to achieve the transition from low to high levels of human capital. The first phase of the human capital transition was the result of the interaction of supply and demand, triggered by technological change and boosted by the demands for (immaterial) services. The second phase of the human capital transition (i.e., mass education) resulted from enforced legislation and major public investment. The state’s aim to influence children’s beliefs appears to have been a key driver in public investment. Nevertheless, the roles governments played differed according to the developmental status and inherent socioeconomic and political characteristics of their countries. These features of the human capital transition highlight the importance of understanding governments’ incentives and roles in transitions.

Suggested Citation

  • Ralph Hippe & Roger Fouquet, 2024. "The Human Capital Transition and the Role of Policy," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 411-457, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-35583-7_79
    DOI: 10.1007/978-3-031-35583-7_79
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    1. Claude Diebolt & Roger Fouquet & Ralph Hippe, 2020. "Cliometrics and the Evolution of Human Capital," Post-Print hal-02920429, HAL.

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