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Lecture 10: Testing for Human Capital as a Binding Constraint - Coggle…
Lecture 10: Testing for Human Capital as a Binding Constraint
Diagnosing Human Capital as a Constraint
Mistery of the aggregate education and income
getting more education increases your income
we would expect that with time (due to tech) we need less years of schooling for hihger income
INSTEAD
today with the same level of educations as in the 1970s you get 1/10 of the 1970s income
most regions got educated without the corresponding increase in income per capita
its the same for health indicators and urbanization and other social indicatros
its dependetn of the country too => thailand and ghana both got educated but thailand shooted in income per capita and ghana stagnated
schooling aint learning -> we have to account for quality
LAYS
2 more items...
Human capital is a compliment to all the other imputs to growth but not a substitute - if you dont have the capacity to use that capital (other constraint) you wont grow - if you have the best professors but they all leave