Human Capìtal and Innovation

LONDON, S, BRIDA J. G, RISSO A

Bahía blanca

Congreso; Reunión anual de la Asociación Argentina de Economía Política; 2007

Asociación Argentina de Economía Política - UNS

The present paper argues that, in line with Nelson-Phelps (1966), there exist important complementarities among educational attainment, R&D activities (and their derived innovations) and economic growth, although subject to a “skill-loss effect” ( -effect), due to the presence of workers who have to perform jobs that require other capacities than the ones they have. Taking Redding’s (1996) formal framework, the main result of our model suggests that the more distorted the labour market is, the stronger must be the investment in R&D necessary to attain a positive economic growth rate.   JEL classification: O41, C0 Key words: endogenous growth – human capital – education