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Title: |
The Quality of Human Capital, Educational Reform and Economic Growth |
| Author: |
Lee, Gwanghoon |
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Affiliation: |
Chung-Ang University, Korea |
| Source: |
International Economic Journal, December 2004, v. 18, no. 4, pp. 451-467 |
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Publication Date: |
December 2004 |
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Abstract: |
Using a general equilibrium growth model with a costly schooling process, this paper analyzes the effect on economic growth of educational reform that allocates more resources to the schooling sector to raise the quality of human capital. It shows that the positive effect of improved quality on the economic growth could be offset by the reverse effect of reduced human capital formation that arises from the distortion of resource reallocation. An appropriate tax-subsidy scheme is shown to remove this reverse effect of educational reform. |
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