Authors
1 Assistant Professor, Graduate School of Management and Economics Sharif University of Technology
2 Graduate student, Institute for Education and Research in Management and Planning
Abstract
Economic theory suggests a causal and positive relationship between human capital and economic growth. Empirical findings, however, report an insignificant and even negative relationship between the two, for many cases. This has been explained by some researchers as a result of neglecting the educational distribution of labour force. In this paper, the significance of this explanation has been examined for the case of Iran. We have shown that, while the relationship between human capital and economic growth is significant and positive, it is statistically improved when the educational distribution of labour force is added to the model.
According to our findings, policy should give more priority to primary and secondary education as opposed to higher education.
Keywords
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