Publication:
The Effect of Increasing Human Capital Investment on Economic Growth and Poverty: A Simulation Exercise

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dc.contributor.authorCollin, Matthew
dc.contributor.authorWeil, David
dc.date.accessioned2018-09-28T15:16:29Z
dc.date.available2018-09-28T15:16:29Z
dc.date.issued2018-09
dc.description.abstractThis paper examines the dynamic responses of income and poverty to increased investment in the human capital of new cohorts of workers, using a quantitative macroeconomic model with realistic demography. Compared to a baseline in which the rate of human capital investment currently observed in every country remains constant, the paper examines two alternative scenarios: one in which each country experiences a rate of growth of human capital investment that is typical of what was observed in the decade ending in 2015, and one in which each country raises human capital investment at a rate corresponding to the 75th percentile of what was observed in the data. In the former, world GDP per capita is 5 percent higher than baseline in the year 2050, while the global rate of $1.90 poverty is 0.7 percentage points lower in that year. In the latter, world GDP per capita is 12 percent higher than baseline in 2050, while the rate of $1.90 poverty drops by 1.4 percentage points. These gains are concentrated in poor countries. The paper argues in the context of our model that investing in people is more cost effective than investing in physical capital as a means to achieve specified income or poverty goals.en
dc.identifierhttp://documents.worldbank.org/curated/en/786861537902769850/The-Effect-of-Increasing-Human-Capital-Investment-on-Economic-Growth-and-Poverty-A-Simulation-Exercise
dc.identifier.doi10.1596/1813-9450-8590
dc.identifier.urihttps://hdl.handle.net/10986/30463
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8590
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectHUMAN CAPITAL
dc.subjectECONOMIC GROWTH
dc.subjectPOVERTY REDUCTION
dc.subjectEDUCATION SPENDING
dc.titleThe Effect of Increasing Human Capital Investment on Economic Growth and Povertyen
dc.title.subtitleA Simulation Exerciseen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Effect of Increasing Human Capital Investment on Economic Growth and Poverty: A Simulation Exercise
okr.date.disclosure2018-09-25
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/786861537902769850/The-Effect-of-Increasing-Human-Capital-Investment-on-Economic-Growth-and-Poverty-A-Simulation-Exercise
okr.guid786861537902769850
okr.identifier.doi10.1596/1813-9450-8590
okr.identifier.externaldocumentum090224b0861f2ee8_1_0
okr.identifier.internaldocumentum30448473
okr.identifier.reportWPS8590
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/786861537902769850/pdf/WPS8590.pdfen
okr.statistics.combined11021
okr.statistics.dr786861537902769850
okr.statistics.drstats9578
okr.topicEducation::Economics of Education
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicPoverty Reduction::Inequality
okr.unitOffice of the Chief Economist, Human Development Vice Presidency
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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