Premium
Education and Health in an Effective‐Labour Empirical Growth Model *
Author(s) -
KNOWLES STEPHEN,
OWEN P. DORIAN
Publication year - 1997
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1997.tb01005.x
Subject(s) - economics , simultaneity , life expectancy , productivity , human capital , production function , production (economics) , growth model , physical capital , simultaneous equations model , labour economics , empirical evidence , function (biology) , demographic economics , econometrics , microeconomics , economic growth , population , sociology , philosophy , physics , demography , epistemology , classical mechanics , evolutionary biology , biology
A structural growth equation is formulated incorporating education and health as labour‐augmenting variables in an aggregate production function. Although the model is an extension of the neoclassical framework, with diminishing returns to physical capital, growth rates in output per worker need not be identical across countries, even in their steady states. Cross‐country empirical estimates suggest a strong positive relationship exists between growth and health (as proxied by life expectancy), even after allowing for possible simultaneity, consistent with other evidence on the productivity‐enhancing effects of improved health status. By contrast, the relationship between output per worker and education is not significant.