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Optimal Schooling for Economic Growth

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  • Kazuyuki SASAKURA

    (Graduate School of Economics, Waseda University)

Abstract

It goes without saying that education matters to promote economic growth. To examine the importance of education or schooling in economic growth, the Uzawa-Lucas model is the most popular in economics. It regards the accumulation of human capital through schooling (i.e., going to school) as the engine of economic growth. The current paper uses a generalized version of the Uzawa-Lucas model and studies the relationship between schooling-related parameters and economic growth. It is concluded that the growth rate of a macroeconomy becomes higher if workers become more patient, population grows faster, the rate of human capital depreciation becomes smaller, or the potentially maximum growth rate of human capital becomes bigger. These results may be expected intuitively. But the effect of the schooling-time elasticity of the growth rate of human capital (i.e., the exponent of the learning function) is not clear. It is shown that it depends on some conditions on schooling time.

Suggested Citation

  • Kazuyuki SASAKURA, 2023. "Optimal Schooling for Economic Growth," Working Papers 2302, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:2302
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    References listed on IDEAS

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    Keywords

    Education; Schooling; Economic Growth; Generalized Uzawa-Lucas Model;
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