Has the Expansion of Higher Education Led to Greater Economic Growth?

  title={Has the Expansion of Higher Education Led to Greater Economic Growth?},
  author={Craig Holmes},
  journal={National Institute Economic Review},
  pages={R29 - R47}
  • Craig Holmes
  • Published 28 April 2013
  • Education, Economics
  • National Institute Economic Review
There is an enduring belief by UK policymakers that a large higher education sector is an important driver of long-run economic growth, which has been part of the narrative since the Robbins Report. Back then, there was plenty of conjecture and assumption, but strikingly little concrete evidence to support such a belief. This paper asks whether the evidence base has strengthened in the 50 years since it was published. It looks at a number of different growth equation specifications and, using… 

The economics of higher education

This paper describes the expansion of higher education (HE) in OECD countries and discusses its economic consequences. For most governments this expansion has been seen as the silver bullet that

Does higher education matter in African economic growth? Evidence from a PVAR approach

ABSTRACT This study investigates the impact of higher education on economic growth and is based on a sample of 18 African economies over the time period 1980–2015. The research makes use of a Panel

The Role of Education on Economic Growth: Evidence from Turkey

ABSTRACT This paper examines the short- and long-term impacts of education on Turkey’s economic growth between 1990 and 2018 through two dimensions: Human capital (labour productivity) and innovative

State Spending for Higher Education: Does it Improve Economic Performance?

Increases in regional spending for higher education are conventionally believed to cause increases in economic performance. However, while some empirical evidence directly or indirectly confirms this

Unravelling the Relationship between Education Structure and Growth Rate Disparities among the Selected Developing Countries

  • K. Fachriansyah
  • Economics
    Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning
  • 2018
Using panel data from 42 developing countries in the year 1965-2010, this paper attempts to explain the impact of human capital (education) on economic growth under the endogenous growth theory.

Returns to higher education in the very long-run: 1870–2010

ABSTRACT This article examines the long-run effect of higher education, measured in average years of tertiary schooling, on the level and growth rate of national per capita income. It uses an

Labour market developments and their significance for VET in England: Current concerns and debates

This chapter discusses the relationship between the labour market and vocational education and training in England. For decades British governments have emphasised the need for more people to stay

The Impact of Higher Education on Economic Growth in ASEAN-5 Countries

This study analyzed the nonlinear impacts of education, particularly higher education, on economic growth in the ASEAN-5 countries (i.e., Thailand, Indonesia, Malaysia, Singapore, and the

The financing of education in European Union in the era of economic crisis. The case study of Greek Higher Education

High quality education and training is the cornerstone to economic growth. Teaching citizens valuable skills in all sectors will spur innovation and ultimately can help improve corporate

The economic impact of tertiary education : the role of public spending and skill choices

This paper examines the effects of higher education on economic growth and income per capita using a panel of high and upper-middle income countries between 1970 and 2010. The analysis resorts to



The Economic and Distributional Implications of Current Policies on Higher Education

The British government's policy towards expanding higher education is based on two beliefs--that it is necessary for an improvement of economic performance, and that it can increase access to better

The Returns to Education: Macroeconomics

We offer an extensive summary and a critical discussion of the empirical literature on the impact of human capital on macro-economic performance, with a particular focus on UK policy. We also

The Role of Education Quality for Economic Growth

The role of improved schooling, a central part of most development strategies, has become controversial because expansion of school attainment has not guaranteed improved economic conditions. This

High Skills Utilisation Under Mass Higher Education: graduate employment in service industries in Britain

This article explores the impact of mass higher education on high skills utilisation in the retailing, computer services and transport and communications industries. In all three industries graduates

Evaluating the impacts of human capital stocks and accumulation on economic growth: some new evidence.

  • N. Gemmell
  • Economics
    Oxford bulletin of economics and statistics
  • 1996
An alternative education-related human capital measure is constructed which is capable of distinguishing between stocks and flows and suggests not only that there are important growth effects associated both with 'initial' stocks of, and subsequent growth in, human capital, but also that this new measure out-performs the simple school enrolment rates used in previous analyses.

A Contribution to the Empirics of Economic Growth

This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of human

Schooling, Labour Force Quality and the Growth of Nations: Comment

Hanushek and Kimko (2000) concluded that, for a sample of nearly 80 countries, the quality of the labour force is significantly positively related to economic growth rates for the period 1960-1990

What Future for Higher Education?

There has been a movement from need-based aid toward non-need -based aid, and fewer than 15-20 private institutions provide financial aid based solely on students’ financial need.

Growth: With or Without Scale Effects?

December 15, 1998 -- Version 1.0 The property that ideas are nonrivalrous leads to a tight link between idea-based growth models and increasing returns to scale. In particular, changes in the size of

Growth, distance to frontier and composition of human capital

We examine the contribution of human capital to economy-wide technological improvements through the two channels of innovation and imitation. We develop a theoretical model showing that skilled labor