Template-Type: ReDIF-Paper 1.0
Author-Name: Kristinn Hermannsson
Author-Name-First: Kristinn
Author-Name-Last: Hermannsson
Author-Email: kristinn.hermannsson@glasgow.ac.uk
Author-Workplace-Name: Centre for Educational Change, University of Glasgow
Author-Name: Patrizio Lecca
Author-Name-First: Patrizio
Author-Name-Last: Lecca
Author-Email: patrizio.lecca@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Title: Human capital in economic development:  from labour productiviey to macroeconomic impact
Abstract: Micro-econometric evidence reveals high private returns to education, most prominently in low-income countries. However, it is disputed to what extent this translates into a macro-economic impact. This paper projects the increase in human capital from higher education in Malawi and uses a dynamic applied general equilibrium model to estimate the resulting macroeconomics impact. This is contingent upon endogenous adjustments, in particular how labour productivity affects competitiveness and if this in turn stimulates exports. Choice among commonly applied labour market assumptions and trade elasticities results in widely different outcomes. Appraisal of such policies should consider not only the impact on human capital stocks, but also adjustments outside the labour market.
Length: 18 pages
Creation-Date: 2015-02
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/15-01.pdf
File-Format: Application/pdf
Number: 1501
Classification-JEL: O15, O22, E17, I25, F16
Keywords: human capital, higher education, labour markets, trade, Malawi
Handle: RePEc:str:wpaper:1501