Human Capital, the Structure of Production, and Growth

By A. Ciccone, Elias Papaioannou. Review of Economics and Statistics, 2009

448 citations recorded by the source corpus.

We document that countries with higher initial education levels experienced faster value-added and employment growth in schooling-intensive industries in the 1980s and 1990s. This effect is robust to controls for other determinants of international specialization and becomes stronger when we focus on economies open to international trade. Our finding is consistent with schooling fostering the adoption of new technologies if such technologies are skilled-labor augmenting, as was the case in the 1980s and the 1990s. In line with international specialization theory, we also find that countries where education levels increased rapidly experienced stronger shifts in production toward schooling-intensive industries.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/ae0696640f1968ad4380386f99612273112ca84f

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Citations in the corpus

Trouble in the Making?: The Future of Manufacturing-Led Development (2017, methodology): “The analysis will follow the empirical methodology in Ciccone and Papaioannou (2009) to identify the effects of competition with China on the relationship between factors of production (e.g. labor and human capital) and specialization of manufacturing, based on jobs, value-added, productivity, and…”
Schooling, educational achievement, and the Latin American growth puzzle (2012, unknown): “Another analysis reducing endogeneity concerns stemming from country-specific effects is the cross-sector analysis of Ciccone and Papaioannou (2009), who employ country and industry fixed effects to show that countries with higher educational achievement have higher growth in skill-intensive…”
How do Very Open Economies Absorb Large Immigration Flows? Recent Evidence from Spanish Regions (2011, methodology): “The cross-country findings in Ciccone and Papaioannou (2007) also suggest a link between skills and technology adoption.”
Large Capital Inflows, Sectoral Allocation and Economic Performance (2015, methodology): “…nominal terms, we deflate them using the aggregate GDP deflator (taken from the WDI), as is standard in the literature (e.g. Kroszner et al., 2007; Ciccone and Papaioannou, 2009; Gupta and Yuan, 2009; Levchenko et al., 2009; Rajan and Subramanian, 2011).11 Appendix 5 provides detailed…”
Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation (2012, unknown): “Our analysis is reinforced by Ciccone and Papaioannou (2009) who find that countries with a more skilled labor force (using the Hanushek and Kimko test measures) experienced faster growth in skill-intensive industries during the 1980s and 1990s.”
What Drives the Dynamics of Business Growth (2016, background): “…Haltiwanger and Krizan (FHK) decomposition industry performance, such as financial development (e.g. Rajan and Zingales, 1998), human capital (e.g. Ciccone and Papaioannou, 2009), rule of law, contract enforcement and institutional quality (e.g. Nunn, 2007, and Levchenko, 2007), or labour market…”
How Much Do Educational Outcomes Matter in OECD Countries? (2011, unknown): “A different route to address these issues would be to follow Ciccone and Papaioannou (2009) and use the cross-sectoral differences in growth according to the importance of human capital for each sector. The idea is to determine if more human capital intensive sectors grow relatively more in countrie”
The long-run impact of human capital on innovation and economic development in the regions of Europe (2018, result): “In addition, the more recent studies by, e.g., De La Fuente and Doménech (2006), Cohen and Soto (2007), Goldin and Katz (2008) and Ciccone and Papaioannou (2009) show the crucial impact of human capital on growth.”
The Role of School Improvement in Economic Development (2007, unknown): “…of education is taken into account.40 Extensions of the measure of Hanushek and Kimko (2000) and its imputation in Wößmann (2003b) are also used in the cross-country growth regressions by Bosworth and Collins (2003) and in the cross-country industry-level analysis by Ciccone and Papaioannou (2005).”
Relationship-Specificity, Contract Enforceability, and Income Smoothing (2013, result): “Furthermore, many other authoritative studies provide support for Nunn’s measure in various contexts, further validating its legitimacy (e.g., Ciccone and Papaioannou 2009; Cristea 2011; Casaburi and Minerva 2011; Chor 2010; Costinot, Oldenski, and Rauch 2011; Ma, Qu, and Zhang 2010; Acemoglu,…”