Shahram Mosalla; Alireza Amini; Gholamreza Geraeinejad; Ali Akbar Khosravinejad
Abstract
The study of the effect of education on total factor productivity is one of the important topics in the macroeconomic literature and educational policy. However, identifying the threshold of the effect of education on total factor productivity is of more interest to policymakers. The present study ...
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The study of the effect of education on total factor productivity is one of the important topics in the macroeconomic literature and educational policy. However, identifying the threshold of the effect of education on total factor productivity is of more interest to policymakers. The present study investigates the nonlinear relationship between education and total factor productivity for the period 1365-1397 SH (1986-2018). Average years of study have been used as an indicator of education and the Gentle Transfer Regression (STR) model has been applied to estimate the threshold. The results confirm the nonlinear effect of education levels on total factor productivity and show that the quantity of education index in a two-regime structure with a threshold of 81.86 (equivalent to the average years of study 7.82 years) has a significant effect on total factor productivity. Given that the Iranian economy has exceeded the threshold since 1390 SH (2011), increasing the quantity of education will have a negative impact on productivity. Therefore, reviewing the quantitative development of education and giving priority to improving the quality of education has more priority than in past.
Fereshteh Mohamadian
Abstract
The purpose of this study is to explain the factors affecting the economic growth gap between OPEC and East Asian countries using the Shapley–Owen–Shorrocks and Oaxaca–Blinder variance decomposition methods over the period 1996-2018. The results of the Shapley–Owen–Shorrocks ...
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The purpose of this study is to explain the factors affecting the economic growth gap between OPEC and East Asian countries using the Shapley–Owen–Shorrocks and Oaxaca–Blinder variance decomposition methods over the period 1996-2018. The results of the Shapley–Owen–Shorrocks decomposition reveal that in East Asian countries, institutional and policy variables (government consumption, inflation, rule of law, trade) and human capital explain 53.31 and 31.38 percent of economic growth fluctuations, respectively. In contrast, in OPEC members, institutional and policy variables and physical capital (investment, Fertility rate) explain 66.72 and 17.75 percent of economic growth fluctuations, respectively. According to the results of the Oaxaca–Blinder decomposition, about 43 percent of the economic growth gap between East Asia and OPEC is due to explained components (mainly rule of law, investment, human capital) and 57 percent due to unexplained components (mainly the return of investment, human capital, inflation, rule of law). Accordingly, efficient use of factors in relation to their endowments has a more important role in explaining the economic growth gap of the countries. A noteworthy point in this regard is the important role of institutional and policy variables. Since institutional and policy variables as well as human capital, fertility rate, and investment are greatly influenced by governance, in order to promote economic growth in OPEC, policymaker should focus on the factors improving good governance.
alaeddin ezoji; Abbas Assari Arani; mohmmad reza vaeze mahdavi; GholamReza K. Haddad
Abstract
The relationship between human capital and labor productivity is always important for economists. Considering the relationship between these two will also be remarkable in microeconomic studies. Meanwhile, the impact of different dimensions of human capital on labor productivity can be a measure ...
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The relationship between human capital and labor productivity is always important for economists. Considering the relationship between these two will also be remarkable in microeconomic studies. Meanwhile, the impact of different dimensions of human capital on labor productivity can be a measure of actual effect of human capital on productivity. The aim of this paper is to examine the effects of various dimensions of human capital (education, health, and experience), on labor productivity based on individual characteristics in Iranian economy. We use micro data (Cost–Income Survey of Urban Areas - 2013) and estimation of Quantile Regression (QR) econometric technique. For this purpose, net income (wage and salary) for employment in private sector is used as proxy of labor productivity. Our results show that in different quantiles, all three dimensions of human capital have a positive and significant effect on productivity of labor force employed in Iranian private sector. Meanwhile, in different quantiles, health indicators of human capital are more volatile than other dimensions of human capital, i.e. education and experience. So, in lower quantiles (Ql), the response of labor productivity to health indicators is more than higher quantiles (Qh). Because of that, any kind of health shock may have a greater effect on labor productivity in lower-income groups. This result shows the importance of health capital in social security, insurance and health systems and reminds us to improve the productivity of working people by means of better health capital.
Vahid Mehrbani
Abstract
While the human capital theory introduces higher education as a factor of productivity enhancement of labor force, but, by contrast, the filter theory denies this idea. The former contends that education as a whole phenomenon is an investment in human beings that enhances their productivity. On the other ...
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While the human capital theory introduces higher education as a factor of productivity enhancement of labor force, but, by contrast, the filter theory denies this idea. The former contends that education as a whole phenomenon is an investment in human beings that enhances their productivity. On the other hand, the latter claims that education exclusively in higher levels has no impact on labor productivity because higher education is irrelevant to productive potency. The aim of this paper is to investigate that challenge. Since the industry sector is the most important sector of any economy and its reliance on university graduates is very high, the viewpoint of two opponent theories is tested by using the data on Iranian industries in period 2003-2011. Findings suggest that proportional increase of university graduates leads to higher levels of productivity. This observation is specifically perceived in BA (BS) and MA (MS) levels but not in PhD level.
Abolghasem Mahdavi; Mohammad Amin Naderian
Volume 10, Issue 38 , October 2010, , Pages 287-309
