A surprising cross-country stylized fact is that higher public spending on education tends to lower the long-run growth rate of per capita GDP and the returns to schooling. This is contrary to the conventional wisdom that education is a major driver of growth. In this article, we revisit this...

Why do some countries industrialize later than others? Recent literature suggests that the prime reason is low agricultural productivity. This paper argues that the initial level of human capital could also be a contributing factor. We construct a neoclassical growth model, which predicts that...