Journal Article10.1007/S10887-005-1113-3
Nonlinearities in Capital–Skill Complementarity
TL;DR: The authors used a novel dataset to test the capital-skill complementarity hypothesis in a cross-section of countries and found that for the full sample there exists evidence in favor of the hypothesis.
read more
Abstract: This paper uses a novel dataset to test the capital–skill complementarity hypothesis in a cross-section of countries. It is shown that for the full sample there exists evidence in favor of the hypothesis. When we arbitrarily split the full sample into OECD and non-OECD countries, we find no evidence in favor of the hypothesis for the OECD subsample, but strong evidence for the non-OECD subsample. When we use Hansen’s [Econometrica 68 (2000) P. 576] endogenous threshold methodology we find that initial literacy rates and initial per capita output are threshold variables that can cluster countries into three distinct regimes that obey different statistical models. In particular, the regime with moderate initial per capita income but low initial education exhibits substantially higher capital–skill complementarity than the regime with low income and low education and the regime with high education. This cross-country nonlinearity in capital–skill complementarity is consistent with the time-series nonlinearity found by Goldin and Katz [Quarterly Journal of Economics 113 (1998) 693] using U.S. manufacturing data, and promotes the view that the phenomenon maybe a transitory one.
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Citations
Econometrics for grumblers: a new look at the literature on cross-country growth empirics
Markus Eberhardt,Francis Teal +1 more
TL;DR: In this article, the authors present two general empirical frameworks for cross-country productivity analysis and demonstrate that they encompass the approaches in the growth empirics literature of the past two decades.
Capital-skill complementarity? evidence from a panel of countries*
TL;DR: In this paper, the authors consider the cross-country evidence for capital-skill complementarity using a time-series, cross-section panel of 73 developed and less developed countries over a 25-year period.
The incidence and persistence of corruption in economic development
TL;DR: In this article, economic development and bureaucratic corruption are determined jointly in a dynamic general equilibrium model of growth, bribery and tax evasion, and the relationship between corruption and development is predicted to be negative.
290
Productive energy use and economic growth: Energy, physical and human capital relationships
TL;DR: In this article, the authors analyzed the role of energy in economic growth from a geographical standpoint by estimating an aggregate translog production function, with human and physical capital and productive energy use as production factors, within a growth framework.
154
Does human capital stimulate investment in physical capital?: Evidence from a cost system framework
Enrique López-Bazo,Rosina Moreno +1 more
TL;DR: In this paper, the authors provide evidence on the indirect effect of human capital in making private capital investment more attractive, and observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital.
97
References
Why Do Some Countries Produce so Much More Output Per Worker than Others
TL;DR: This paper showed that differences in physical capital and educational attainment can only partially explain the variation in output per worker, and that a large amount of variation in the level of the Solow residual across countries is driven by differences in institutions and government policies.
Why do Some Countries Produce So Much More Output Per Worker than Others
Robert E. Hall,Charles I. Jones +1 more
TL;DR: This article showed that the differences in capital accumulation, productivity, and therefore output per worker are driven by differences in institutions and government policies, which are referred to as social infrastructure and called social infrastructure as endogenous, determined historically by location and other factors captured by language.
Returns to investment in education: A global update
TL;DR: In this paper, the authors discuss methodological issues surrounding those estimates and confirm that primary education continues to be the number one investment priority in developing countries, and also show that educating females is marginally more profitable than educating males, and that the academic secondary school curriculum is a better investment than the technical/vocational tract.
3.6K
Sample Splitting and Threshold Estimation
TL;DR: In this paper, the authors developed a statistical theory for threshold estimation in the regression context, which is shown to yield asymptotically conservative confidence regions and Monte Carlo simulations are presented to assess the accuracy.
Inference when a nuisance parameter is not identified under the null hypothesis
TL;DR: In this paper, the asymptotic distribution of standard test statistics is described as functionals of chi-square processes, and a transformation based upon a conditional probability measure yields an asymptic distribution free of nuisance parameters, which can be easily approximated via simulation.