Understanding the effects of human capital on economic growth
PhD ceremony: | M.A. (Marianna) Papakonstantinou, PhD |
When: | November 02, 2017 |
Start: | 16:15 |
Supervisors: | prof. dr. M.P. (Marcel) Timmer, prof. dr. R.C. (Robert) Inklaar |
Where: | Academy building RUG |
Faculty: | Economics and Business |

There is a strong consensus in the literature regarding the importance of education, and therefore human capital, for the economy and society as a whole. Education is highly valued, not only because of its potential to generate monetary returns but also because of the social (non-pecuniary) returns it entails. The core aim of this thesis is to examine the importance of human capital in facilitating faster growth.
First, I depart from the assumption that an hour worked delivers a constant quantity of labor services over time. Instead, new cohorts of graduates may differ from previous ones with respect to the quantity of labor services per hour worked they supply. I find that these human capital vintage effects are important in accounting for the trans-Atlantic productivity growth difference between 1995 and 2005.
Second, I revisit the ability of human capital to bring about externalities by facilitating technological progress and technology adoption. To that end, I relate human capital to total factor productivity growth. I find evidence of externalities stemming from tertiary-educated people and also that these externalities depend on a country’s level of technological development.
Third, I investigate international spill-overs of human capital by analyzing the impact of migration on the home country’s human capital. I find that countries with higher emigration rates of skilled workers show faster growth in knowledge-intensive manufacturing industries. This suggests evidence for ‘brain gain’ rather than ‘brain drain’.