We modify the concept of the middle-income trap (MIT) against the background of the Fourth Industrial Revolution and the (future) challenges of automation (creating the concept of the "MIT 2.0") and discuss the implications for developing Asia. In particular, we analyze the impacts of...

Schools vary in quality, and high-performing schools tend to be oversubscribed: there are more applicants than places available. In this paper, we use nationally representative cohort data linked to administrative education records to study the consequences of failing to gain admission to one's...

In this paper we investigate the impact of technological change on inequalityin the presence of a landed elite using a standard unified growth model. We measure inequality by the ratio between land rent and wages and show that, before the onset of the fertility transition, technological progress...

We develop a model in which many heterogeneous agents invest in human capital as they compete for better college admission slots or employment opportunities. The model provides theoretical predictions about how affirmative action or preferential treatment policies change the distribution of...

In this paper, we analyze how a weighted voting system introduced in 1862, which shifted the distribution of political power from landowners to industrialists at local town meetings, affected investments in local public education. We use an event study design based on a newly constructed panel...

This paper investigates the effects of college tuition on student debt and human capital accumulation. We exploit data from a random sample of undergraduate students in the United States and implement a research design that instruments for tuition with relatively large changes to the tuition of...

The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning...

In the research on peer effects, unweighted mean classroom performance is the predominant measure used in the estimation of education production functions. In this paper, based on the sociological concept of homophily, I introduce social network matrices that correspond to a weighting scheme for...

We analyze inequality and mobility across generations in a dynastic economy. Nurture, in terms of bequests and the schooling investment into the next generation, is observable but the draw of nature in terms of ability is hidden, stochastic and persistent across generations. We calibrate the...

The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning...

This article analyzes the effect of public policy intervention in the production of health capital on fertility, private investment in children's health and education and human capital accumulation. I have used a growth model with endogenous fertility, in which the usual parental trade-off...

To understand the weak empirical relationship between human capital and macroeconomic performance, this paper presents a model in which human capital is allocated to three activities: production, tax collection (bureaucracy), and public education. The effective tax rate is low in poor countries...

This paper presents a life-cycle model with human capital investment during working life through training and provides a novel empirical test of human capital theory. We exploit a sizable pension reform across adjacent cohorts in a regression discontinuity setting and find that an increase in...

This paper combines multiple sources of information on early childhood development in a unified model for analysis of a wide range of early childhood policy interventions. We develop a model of child care in which households decide both the quantities and qualities of maternal and non-maternal...

This article traces inequality and numeracy development in the regions of Chile during the 19th and early 20th century. Inequality, measured with anthropometric methods, was associated with a lower speed of human capital formation. Not all talents received the necessary education to make full...

The aim of this study is to examine whether investment risk is related to the managerial factors characterising portfolio managers. The study employs four risk measures and a set of individual manager characteristics, including socio-demographic variables determining a manager profile. The...

The literature suggests that the household invests in the human capital of a child member not only for altruistic reasons but also as insurance against future income shocks. Hence, the allocation of the child's time between school and work is a function of the risk preference of the household...

Unlike physical capital, human capital has both embodied and disembodied dimensions. It can be perceived of as skill and acquired knowledge, but also as knowledge spillover effects between overlapping generations and across different skill groups within and across countries. We illustrate the...

The lottery of birth draws some children into deprived environments and others into environments where they thrive. In a field experiment in rural India with 10-20 months old children we test two scalable interventions to reduce early disadvantages in health and mental development. We distribute...

Peacetime military service has both positive and negative effects on human capital. While it depreciates academic abilities it also enhances non-cognitive skills. The net effect of conscription is hard to identify due to issues of self-selection, endogenous timing and omitted variables bias. We...

This paper examines the effects of human capital on SMEs' participation in global value chains using Indonesian firm-level data. The paper adopts the discrete choice modeling of the probit framework to examine the behavior of firms in the export market. In particular, it examines SME behavior in...

Our research is devoted to the investigation of theoretical aspects of human capital formation through human potential migration redistribution and investment process. This topic was chosen because in the modern conditions human potential development becomes one of basic factors of the...

The difference in educational attainment between China's urban- and rural-born populations has widened in recent years, and the relatively low educational attainment of the rural-born is a significant obstacle to raising labor productivity. Rural-to-urban migration does not create incentives to...

The development of a knowledge economy is a key priority for innovative progress and for ensuring the country's competitiveness through the efficient use of intellectual resources and human capital. Our paper is focused on a necessity to find out the influence of human capital in providing...

This research establishes empirically that existing cross-language variations in the structure of the future tense and the presence of grammatical gender affected human capital accumulation. Exploiting variations in the dominant languages among migrants from the same countries of origin, the...

Same-gender teachers may affect educational preferences by acting as role models for their students. I study the importance of the gender composition of teachers in mathematics and science in lower secondary schools on the likelihood of continuing on math-intensive tracks in the next levels of...

We study how the tasks conducted on the job relate to measures of cognitive skills using data from 18 countries participating in the Programme for the International Assessment of Adult Competences (PIAAC) and from 13 countries that also participate in the International Adult Literacy Study...

Around 1870 the U.S. had no research universities of note, while today it accounts for the largest number in the world. Many accounts attribute this transformation to events surrounding World War II. In contrast, this paper traces its origins to reforms that began in the 1870s. We first explain...

Using the task-based framework, this study measures the level of skill transferability across occupations by building an occupational distance measure. The distance measure allows us to compare occupations in terms of their task profiles. Skill transferability between two occupations is high if...

India's TVET system, by international standards, is at a very rudimentary level of development. TVET was a relatively neglected subject in India's educational planning, at least until the beginning of 2007. However, this changed with the 11th Plan (2007012). One dimension of this change was the...

Over the 1948-2013 period, many factors significantly impacted on human capital, which in turn affected economic growth in the United States. This chapter analyzes these factors within a complete national income accounting system which integrates Jorgenson-Fraumeni human capital into the...

The lottery of birth draws some children into deprived environments and others into environments where they thrive. In a field experiment in rural India with 10-20 months old children we test two scalable interventions to reduce early disadvantages in health and mental development. We distribute...

This paper assesses the potential for skilled labor migration from sub-Saharan Africa to Europe. It utilizes representative surveys from Ghana and Kenya to shed light on the quality and distribution of skills in the labor markets of these countries. Skills in both countries are found to be...

We characterize the distribution of permanent-income and quantify the value of assets and human capital in lifetime wealth portfolios. We estimate the distribution of human wealth using nonparametric identification results that allow for state-dependent stochastic discounting and unobserved...

This study was prepared by Annika B. Bergbauer while she was working at the Ifo Center for the Economics of Education. It was completed in March 2019 and accepted as a doctoral thesis by the Department of Economics at the University of Munich in July 2019. It consists of four self-contained...

One of the most important policy goals in industrialized countries is to increase the skill level of the labor force by life-long-learning strategies. In this paper our aim is to explain to what extent the variation in training investments is determined either by (observed and unobserved)...

This paper covers a continuous and longer time period than previously possible to examine human and market capital because of research by Christian (2017). This paper focuses on the presentation and analysis of trends in human capital by gender. During 1975-2012 there were significant changes in...

By adopting the evolutionary approach to resilience, this paper discusses and empirically investigate the determinants of the ability of region to resist, absorb, and react to recessionary shocks. The recent 2008 Great Recession has extremely affected most of the advanced economies all over the...