Education and growth with learning by doing

G. Marconi, A. de Grip

Research output: Working paperProfessional

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Abstract

In this paper, we develop a general equilibrium overlapping generations model which is based on the view that education makes workers more productive by increasing their ability to learn from work experience, rather than providing skills that directly increase productivity. This assumption is discussed and compared with the dominant "Mincerian" view on the education-productivity relationship. One important implication of the model is that the enrolment rate to education has a negative effect on the GDP in the medium term and a positive effect in the long term. This could be an explanation for the weak empirical relationship between education and economic growth that has been found in the empirical macroeconomic literature. Conversely, for a given enrolment rate, the quality of education, as measured by work
Original languageEnglish
Place of PublicationMaastricht
PublisherMaastricht University, Graduate School of Business and Economics
Publication statusPublished - 1 Jan 2014

Publication series

SeriesGSBE Research Memoranda
Number032

Cite this

Marconi, G., & de Grip, A. (2014). Education and growth with learning by doing. Maastricht University, Graduate School of Business and Economics. GSBE Research Memoranda, No. 032