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DOES LABOUR FORCE EDUCATION ACCELERATE THE SPEED OF CONVERGENCE? EMPIRICAL EVIDENCE FROM SELECTED EU COUNTRIES

100%
Workie-Tiruneh M.
Ekonomický časopis (Journal of Economics)
|
2013
|
vol. 61
|
issue 4
344 – 357
EN
This paper empirically looks at the contribution of labour force education to the speed at which relatively poor economies are converging to the income per capita level of richer economies. While there is a bulk of empirical studies in addressing the links between human capital and economic growth, this paper makes an endeavour to use a less frequently used proxy for human capital, i.e. the education of the labour force at various levels and investigates whether we can explain cross-country variation in economic growth with variation in labour force education. Using the data of EU-26 countries in the period (1995 – 2009) and based on a three-period data and five-year interval non-overlapping panel, the paper finds that the labour force education helps countries to grow at a faster rate.
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