Publication:
The Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidence

dc.contributor.authorBalan, David J.
dc.contributor.authorKnack, Stephen
dc.date.accessioned2012-03-19T18:03:16Z
dc.date.available2012-03-19T18:03:16Z
dc.date.issued2011-06-01
dc.description.abstractThis paper incorporates morality -- defined as lower utility from consuming goods obtained through appropriative rather than productive activities -- into a simple static general equilibrium model in which agents choose whether to be producers or appropriators. The authors analyze the relationship between the correlation between morality and human capital on the one hand, and aggregate economic performance on the other. They show that there is a main effect that tends to cause this relationship to be positive, and that there can be secondary effects that can either rein-force or oppose (or even overbalance) the main effect. They test the theory using the World Val-ues Survey as a source of proxies for morality. Using their preferred proxy, they find evidence that higher within-country correlation between morality and ability, holding constant the levels of morality and ability, increases per-capita income levels. Under the preferred specification, a one-standard-deviation increase in the correlation between morality and ability raises the log of per-capita income by about one-fourth of a standard deviation, equal to approximately $3,600 for the median income country in the sample. The results are robust to correcting for endogeneity and to changes in sample and specification. The results are mixed when the analysis uses alternative morality proxies, but the coefficient on the morality-ability correlation is still usually positive and statistically significant.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110630123337
dc.identifier.urihttps://hdl.handle.net/10986/3483
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5720
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACHIEVEMENT
dc.subjectCAUSATION
dc.subjectCOMPETITIVENESS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCORRELATIONS
dc.subjectDEVELOPMENT POLICY
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMETRICS
dc.subjectECONOMIC PERFORMANCE
dc.subjectEDUCATION LEVEL
dc.subjectENDOGENOUS VARIABLES
dc.subjectENTREPRENEURSHIP
dc.subjectEQUATIONS
dc.subjectETHICAL BEHAVIOR
dc.subjectETHICS
dc.subjectEXPORTS
dc.subjectFORMAL EDUCATION
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectHONESTY
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN DEVELOPMENT
dc.subjectHYPOTHESES
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINDEPENDENT VARIABLES
dc.subjectINFERENCE
dc.subjectINTUITION
dc.subjectISLAM
dc.subjectLET
dc.subjectLINEAR MODELS
dc.subjectMISSING DATA
dc.subjectMODELING
dc.subjectMORALITY
dc.subjectNUMERICAL ANALYSIS
dc.subjectORDINAL SCALES
dc.subjectOUTLIERS
dc.subjectPAPERS
dc.subjectPER CAPITA INCOME
dc.subjectPERSONALITY
dc.subjectPOLITICAL ECONOMY
dc.subjectPREDICTION
dc.subjectPREDICTIONS
dc.subjectPROBABILITY
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPSYCHOLOGY
dc.subjectPUBLIC SERVICES
dc.subjectPURCHASING POWER
dc.subjectREALITY
dc.subjectREASONING
dc.subjectRELIGION
dc.subjectRELIGIONS
dc.subjectRENT SEEKING
dc.subjectROM
dc.subjectSACRIFICE
dc.subjectSAMPLE SIZE
dc.subjectSCHOOLING
dc.subjectSCHOOLS
dc.subjectSECONDARY EDUCATION
dc.subjectSTANDARD DEVIATION
dc.subjectSTANDARD DEVIATIONS
dc.subjectSTANDARD ERRORS
dc.subjectSTATISTICAL SIGNIFICANCE
dc.subjectSTRUCTURAL MODELING
dc.subjectSUPPLY CURVE
dc.subjectTIME SERIES
dc.subjectTRANSITION ECONOMIES
dc.subjectUNEMPLOYMENT
dc.subjectVALIDITY
dc.titleThe Correlation between Human Capital and Morality and Its Effect on Economic Performance : Theory and Evidenceen
dspace.entity.typePublication
okr.date.disclosure2011-06-01
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110630123337
okr.globalpracticeEducation
okr.identifier.doi10.1596/1813-9450-5720
okr.identifier.externaldocumentum000158349_20110630123337
okr.identifier.internaldocumentum14491356
okr.identifier.reportWPS5720
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/06/30/000158349_20110630123337/Rendered/PDF/WPS5720.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.sectorPublic Administration, Law, and Justice :: General public administration sector
okr.topicEducation::Educational Sciences
okr.topicTeaching and Learning
okr.unitDevelopment Research Group (DECRG)
okr.unitDECRG: Human Development (DECHD)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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