Institutional Change and Economic Behaviour pp 99-112 | Cite as
The Schumpeterian Approach to Education and Growth
Abstract
Unlike other subjects or questions on which I have been working, my thinking about education and growth was spurred by policy demands. First, by the French Conseil d’Analyse Economique which asked me to write a report on the subject back in 2001. And a year later, by the European Commission which asked me to co-author a report (now referred to as the ‘Sapir Report’) on the causes of the slow growth in Western Europe. A first look at the United States versus the EU in 1999–2000 shows that 37.3 per cent of the United States population aged 25–64 have completed a higher education degree, against only 23.8 per cent of the EU population. This educational attainment comparison is mirrored by that on tertiary education expenditure, with the United States devoting 3 per cent of its GDP to tertiary education versus only 1.4 per cent in the EU. Is this European deficit in tertiary education investment adverse for growth?
Keywords
Human Capital Productivity Growth Human Capital Accumulation Technological Frontier Country Fixed EffectPreview
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