There is wide academic consensus on institutional design being the key inhibitor of the Bolivian industrialization process during Evo Morales´s time in office. However, the effects of investment in human capital in the industrialization process has not been explored to the same degree. This is...

We propose an innovation-driven growth model in which education is determined by family background and cognitive ability. We show that compulsory schooling can move a society from elite education to mass education, which then triggers market R&D. This means that our model rationalizes two...