This paper develops a multi-sector, small open economy Dynamic Stochastic General Equilibrium model, which includes the accumulation of human capital, built via public expenditures in education and health. Four possible fiscal rules are examined for total public investment in infrastructure,...

This paper reviews the evidence on the importance of human capital for macro-economic development. Through the lens of a simple aggregate production function, human capital might increase output per capita by directly entering in the production process, incentivising the accumulation of...

In many low-income countries, teachers do not master the subject they are teaching, and children learn little while attending school. Using unique data from nationally representative surveys of schools in seven Sub-Saharan African countries, this paper proposes a methodology to assess the effect...

A number of developing countries are currently promoting vocational education and training (VET) as a way to build human capital and strengthen economic growth. The primary aim of this study is to understand whether VET at the high school level contributes to human capital development in one of...

Conditional cash transfers are programs under which poor families get a stipend provided they keep their children in school and take them for health checks. Although there is significant evidence showing that they have positive impacts on school participation, little is known about the long-term...

Returns to investment in education based on human capital theory have been estimated systematically since the 1950s. In the 60-plus year history of such estimates, there have been several compilations in the literature. This paper reviews and highlights the latest trends and patterns based on a...

This note summarizes some of the key contributions in the macro- and micro- economic literature on the pathways linking human capital and income growth. Rather than completeness, the objective of this work is to distill some of the most relevant threads in the evolution of these literatures...

This study provides empirical evidence that trade increases on-the-job human capital accumulation by estimating the effect of home country openness on estimated returns to home country experience of U.S. immigrants. The positive effect of trade on on-the-job human capital accumulation remains...

In this paper the authors estimate the rate of return to firm investments in human capital in the form of formal job training. They use a panel of large firms with unusually detailed information on the duration of training, the direct costs of training, and several firm characteristics such as...

Mexico's conditional cash transfer program, PROSPERA, has demonstrated short- and medium-term positive effects on health and education, including: increased children's height; decreased risky behaviors among adolescents, including the postponement of parenthood; and increased years of schooling....