Human Capital Accumulation and Public Sector Growth
Author | : Mr.Vito Tanzi |
Publisher | : International Monetary Fund |
Total Pages | : 14 |
Release | : 1995-09-01 |
ISBN-10 | : 9781451950441 |
ISBN-13 | : 1451950446 |
Rating | : 4/5 (446 Downloads) |
Download or read book Human Capital Accumulation and Public Sector Growth written by Mr.Vito Tanzi and published by International Monetary Fund. This book was released on 1995-09-01 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present paper takes a fresh theoretical and empirical look into the relationship between Wagner’s law and economic development. It introduces human capital into a classic two-sector model of unbalanced growth. It shows that, as an economy develops, changes in the relative returns to human capital and unskilled labor, as a result of changes to their relative scarcities, could have a significant impact on the size of the government sector, depending in part also on the difference in relative factor intensities between outputs of the private and government sectors. This conjecture is broadly supported by empirical evidence based on a cross-section analysis of a large sample of developed and developing countries.