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Literacy, Human Capital and Growth

Author

Listed:
  • Serge Coulombe

    (Department of Economics, University of Ottawa)

  • Jean-François Tremblay

    (Department of Economics, University of Ottawa)

Abstract
We derive synthetic time series over the 1960-1995 period on the literacy level of labor market entrants from the demographic profile of the 1994 International Adult Literacy Survey. This information is then used as a measure of investment in education in a two-way error correction panel data analysis of cross-country growth for a set of 14 OECD countries. The central result of the paper is that direct measures of human capital based on literacy scores outperform measures based on years of schooling in growth regressions. The results indicate that, overall, human capital indicators based on literacy scores have a positive and significant effect on the transitory growth path, and on the long run levels of GDP per capita and labor productivity.

Suggested Citation

  • Serge Coulombe & Jean-François Tremblay, 2004. "Literacy, Human Capital and Growth," Working Papers 0407E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:0407e
    as

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    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0407E.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Human capital; growth regressions; convergence; gender gap; literacy;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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