Human Capital and Economic Growth: A Case Study of Greece before Economic Crisis

PDF
Published: May 11, 2017
DOI: https://doi.org/10.12681/elrie.795
Keywords:
education quality labor economic growth
Theocharoula Magoula
Abstract

This paper investigates the contribution of education to the economic growth of Greece during the period 1960-2006, before the 2008 crisis. The method is based on “qualitative labor “ approach of E. Denison. It estimates the contribution of different levels skills to the economic growth of Greece.

The study utilizes data from the National Accounts, the Labor Force Surveys and the Household Budget Surveys of the National Statistical Service of Greece.

The results suggest that the relative contribution of secondary and higher education to economic growth has risen.  The findings also indicate that the increased number of women with higher education and their subsequent participation in the labor force have contributed significantly to the growth process.

Article Details
  • Section
  • Εισηγήσεις
Authors retain copyright under a Creative Commons Attribution that allows others to share the work with an acknowledgement of the work's authorship and initial publication in the proceedings.
Author Biography
Theocharoula Magoula
Ph.D., Ε.Κ.Π.Α.
References
Benhabib, J. & Spiegel, M. (1994) The role of human capital in economic development, evidence from aggregate cross-country data’, Journal of Monetary Economics, 34, 143-173.
Blau, F. (1996) Symposium on primary and secondary education, Journal of Economic Perspectives, 10 (4), 3-8.
Bowles, S. (1967) Sources of growth in the Greek Economy, 1951-1961, Center of International Affairs, Memorandum No 27, Cambridge: Harvard University 1967.
Choi, K. (1993) Technological change and educational wage differentials in Korea, Yale University, Economic Growth Center, Center D.P. series No 698.
Denison, E. (1962) The sources of economic growth in the United States and the alternatives before us, New York, Committee for Economic Development.
Grossman, G. & Helpman, E. (1994) Endogenous innovation in the theory of economic growth, Journal of Economic Perspectives, 8 (1), 23-44.
Juoro, U. (1993) Education, Talent Allocation and Growth in Indonesia, World Bank, mimeo.
Leibenstein, H. (1967) Rates of return to education in Greece, Development Advisory Service, Harvard University, Economic Development Report No 94, Sep. 1967.
Lucas, R. (1988) On the mechanics of economic development, Journal of Monetary Economics, pp. 3 - 42.
Lucas, R. (1990) Why doesn’t capital flow from rich to poor countries? American Ecomomic Review, 80 (2), 92-96.
Magoula, T. & Prodromidis, K. (1999) Education and Economic Growth in Greece, Discussion Paper No. 102, Athens University of Economics and Business.
Magoula, Th. (1998) Education and economic growth: the Greek reality, Athens University of Economics and Business, unpublished Ph.D. thesis.
Mankiw, N., Romer, D. & Weil, D. (1992) A contribution to the empirics of economic growth, Quarterly Journal of Economics, 107, 407-437.
Mulligan, C. and Sala-i-Martin, X. (1995) Measuring aggregate human capital, NBER Working Paper Series, WP No 5016.
Psacharopoulos, G. (1972) The Marginal contribution of Education to Economic Growth, Economic Development and Cultural Change 20, No 4, pp. 641-58
Psacharopoulos, G. (1974) The screening Hypothesis and the returns to Education, Journal of Political Economy 82, No 5.
Psacharopoulos, G. (1975) Earnings of Education in OECD Countries, OECD 1975.
Psacharopoulos, G. (1982) Earnings and Education in Greece, 1960-1977, European Economic Review 17, pp. 333-347.
Psacharopoulos, G. (1982) The economics of higher Education in developing countries, Comparative Education Review, vol. 26, No 2, June 1982.
Psacharopoulos, G. (1987) Economics of Education: Research and Studies, Oxford: Pergamon.
Psacharopoulos, G. (1992) Educational Expansion and Earnings differentials in Greece, Comparative Education Review, vol. 36, No 1.
Psacharopoulos, G. & Arriagada, A. (1992) The Educational Composition of the Labor Force: An International Update, Journal of Educational Planning and Administration, vol. VI, No 2, April 1992, pp. 141-159.
Psacharopoulos, G. (1993) Returns to Investment in Education: A Global Update, Working papers WPS 1067
Psacharopoulos, G. & Ng, Y. (1994) Earnings and Education in Latin America, Education Economics 2 (2), pp. 187-207.
Psacharopoulos, G. (1995) The Profitability of Investment in Education: Concepts and Methods, HROVP, World Bank, March 1995.
Psacharopoulos, G. (1995) RR Manual: A programme to estimate the rate of return to investment in Education, HCOVP, World Bank, Dec. 1995.
Romer, P. (1986) Increasing returns and long-run growth, Journal of Political Economy, 94(5), 1002-1037.
Romer, P. (1990) Endogenous technological change, Journal of Political Economy, 98 (5, pt. 2) S71-S102.
Romer, P. (1993) Idea gaps and object gaps in economic development, Journal of Monetary Economics 32, 543-573.
Schultz, T. (1961) Investment in human capital, American Economic Review, 51, 1-17.
Welch, F. (1970) Education in production, Journal of Political Economy, 78, 35-79.
Winter-Ebmer, R. (1992) Endogenous growth, human capital and industry wages, Arbeitspapier No, 9206, Institut fuer Volkswirtschaftslehre, Johannes Kepler Universitaet