Human Capital and the Future of Transition Economies

M Spagat

Research output: Working paperDiscussion paper

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Abstract

Transition economies have an initial condition of high human capital relative to GDP per capita, giving them high growth potential. In the model, at a good equilibrium a large nuber of children of well-educated parents take advantage of their familybackgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational achievements are wasted as children fail to build upon their parents' achievements. Policies and economic conditions can be decisive in determining the outcome. The model provides a basis for distinguishing development economics from transition economics.
Original languageEnglish
Publication statusPublished - 2 Oct 2003

Publication series

NameHuman Capital

Keywords

  • Transition
  • Development
  • Human Capital
  • Education
  • Growth

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