Quality-Adjusted Human Capital And Productivity Growth
Both the quality and quantity of human capital are important for growth. Although the quality aspects of human capital may have greater potential in explaining growth, given that the quantity effects of human capital have been found to be ambiguous, they have long been ignored in empirical growth literature. This paper empirically tests the joint effects of both the quantity and quality of human capital in stimulating productivity growth for a panel of 89 countries over the period 1970-2007. Based on different measures of human capital quantity and quality, the results show that the growth effects of educational attainment can be significantly enhanced when the quality of schooling is improved.