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Specific and General Human Capital in an Endogenous Growth Model

Author

Listed:
  • Evangelia Vourvachaki
  • Vahagn Jerbashian
  • : Sergey Slobodyan

Abstract

In this paper, we define specific (general) human capital in terms of the occupations whose use is spread in a limited (wide) set of industries. We analyze the growth impact of an economy's composition of specific and general human capital, in a model where education and R&D are costly and complementary activities. The model suggests that a declining share of specific human capital, as observed in the Czech Republic, can be associated with a lower rate of long run growth. We also discuss optimal educational policies in the presence of market frictions.

Suggested Citation

  • Evangelia Vourvachaki & Vahagn Jerbashian & : Sergey Slobodyan, 2014. "Specific and General Human Capital in an Endogenous Growth Model," CERGE-EI Working Papers wp520, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp520
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    References listed on IDEAS

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    Cited by:

    1. Bogdan Oancea & Richard Pospíšil & Raluca Mariana Drăgoescu, 2017. "Higher Education and Economic Growth. A Comparison between Czech Republic and Romania," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(4), pages 467-486.

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    More about this item

    Keywords

    human capital types; economic growth; education policy;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • I20 - Health, Education, and Welfare - - Education - - - General

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