Externalities of education
| Group 1: Externalities of education | ||
|---|---|---|
| Citation | Journal | Main findings |
| Dolado et al. (1994) | Journal of Population Economics | The higher the content of the imported immigrants’ human capital, the lower the negative output and growth effect |
| Steinmann et al. (1998) | Journal of Population Economics | Low birth rate, increased education investment, high per capita output, and population levels help escape the Malthusian trap |
| Bräuninger and Vidal (2000) | Journal of Population Economics | Rising public education cuts private costs, boosts skilled workforce, and fuels growth. However, it crowds out capital, hindering learning-by-doing. Marginal education subsidies may impede growth more than private education |
| de la Croix and Monfort (2000) | Journal of Population Economics | The extent to which one region benefits from another’s region human capital depends on the distance between them |
| Chen (2006) | Journal of Population Economics | When people move for better opportunities, economic growth is affected more by private education. Moreover, in countries with higher taxes, public education leads to better long-term economic growth compared to private education |
| Trivedi (2006) | Journal of Development Studies | Higher secondary school enrollment positively influences steady-state per capita income levels and growth rates, applicable to both males and females |
| Bolt and Bezemer (2009) | Journal of Development Studies | In Africa, colonial education levels shape long-term economic growth. However, education’s positive impact may also trigger instability, ethnic tensions, and violence |
| Fioroni (2010) | Journal of Population Economics | In a private education system, low initial income leads to a Malthusian stagnation state; high-income results in a growth path with improved education and reduced fertility. In public education, a shared education level facilitates poor families’ transition from stagnation to sustained growth |
| Martins and Jin (2010) | Journal of Population Economics | Education’s impact on productivity and wages is mainly within firms, highlighting significant external effects, suggesting social returns to education surpass private returns |
| Fleisher et al. (2010) | Journal of Development Economics | Education directly boosts production, positively impacting Total Factor Productivity (TFP) growth with both direct and indirect spillover effects |
| Beine et al. (2011) | World Development | Prospects of skilled migration boost human capital in low-income nations. A net brain gain is possible with a controlled emigration rate |
| Dustmann et al. (2011) | Journal of Development Economics | Developing countries benefit when citizens use skills where rewards are highest. Yet, without transfers, emigration can harm those left behind, affecting factor prices and local public goods financing |
| Fleisher et al. (2011) | Journal of Development Economics | The estimated marginal products significantly exceed wages, with a more pronounced disparity for highly educated workers |
| Suri et al. (2011) | World Development | Early human development upgrades drive subsequent economic growth, fostering a positive cycle of improved economic growth and enhanced human development |
| Parrotta et al. (2014) | Journal of Population Economics | Educated workers, with diverse experiences and knowledge, excel in problem-solving and creativity, promoting innovations in the process |
| Benos and Zotou (2014) | World Development | The inclusion of education enrollment, spending, political measures, initial output, and inflation enhances the positive impact of education on growth |
| Leten et al. (2014) | Research Policy | University education and scientific research positively impact neighboring firms’ technological performance, benefiting from both scientific work and graduates in a province |
| Boccanfuso et al. (2015) | World Development | Young high-skilled workers show a nine percentage-point employment gain over older workers, with a higher likelihood of quality jobs, reducing skill mismatch |
| Guerrero et al. (2015) | Research Policy | Exploratory analysis reveals significant positive economic impact from teaching, research, and entrepreneurship |
| Bove and Elia (2017) | World Development | Migration brings diverse skills, fostering innovation and economic growth. However, increased heterogeneity may hinder social cohesion, creating coordination barriers and affecting development negatively |
| Cabus and Somers (2018) | Studies in Higher Education | A one-month increase in companies’ workforce schooling level reduces the probability of reported skill mismatch by −3.0% points |
| Nabi et al. (2018) | Studies in Higher Education | Entrepreneurship education participants show increased learning and inspiration, but the change in entrepreneurial intentions is not significantly different from non-participants |
| Borah et al. (2019) | Research Policy | Universities prioritize industry-specific skills for broader employability, while firms aim to leverage collaborations for training students with firm-specific skills efficiently |
| Bucci and Prettner (2020) | Journal of Population Economics | Weak human capital dilution allows faster population growth to accelerate human capital accumulation, technological progress, and productivity. Advanced knowledge sustains growth despite a declining population |
| Cui and Martins (2021) | World Development | Education contributes to global development through individual benefits and increased social returns in poorer countries |
| Afcha et al. (2023) | Technological Forecasting and Social Change | PhD recruitment boosts firm-university collaboration and R&D service purchases. Losing PhDs affects collaboration, but not R&D acquisition |
| Braunerhjelm and Lappi (2023) | Research Policy | Entrepreneurial Human Capital’s positive impact extends to various education and age groups but diminishes with the oldest cohorts |
| Gust et al. (2024) | Journal of Development Economics | Over two-thirds of global youth lack basic skills, varying from 24% in North America to 89% in South Asia and 94% in Sub-Saharan Africa |
| Vidal (1998) | Journal of Population Economics | Higher human capital formation in the source country increases the risk of emigration. Unexpectedly, greater emigration can push the source economy out of the stagnation trap |
| Group 1: Externalities of education | ||
|---|---|---|
| Citation | Journal | Main findings |
| The higher the content of the imported immigrants’ human capital, the lower the negative output and growth effect | ||
| Low birth rate, increased education investment, high per capita output, and population levels help escape the Malthusian trap | ||
| Rising public education cuts private costs, boosts skilled workforce, and fuels growth. However, it crowds out capital, hindering learning-by-doing. Marginal education subsidies may impede growth more than private education | ||
| The extent to which one region benefits from another’s region human capital depends on the distance between them | ||
| When people move for better opportunities, economic growth is affected more by private education. Moreover, in countries with higher taxes, public education leads to better long-term economic growth compared to private education | ||
| Higher secondary school enrollment positively influences steady-state per capita income levels and growth rates, applicable to both males and females | ||
| In Africa, colonial education levels shape long-term economic growth. However, education’s positive impact may also trigger instability, ethnic tensions, and violence | ||
| In a private education system, low initial income leads to a Malthusian stagnation state; high-income results in a growth path with improved education and reduced fertility. In public education, a shared education level facilitates poor families’ transition from stagnation to sustained growth | ||
| Education’s impact on productivity and wages is mainly within firms, highlighting significant external effects, suggesting social returns to education surpass private returns | ||
| Education directly boosts production, positively impacting Total Factor Productivity (TFP) growth with both direct and indirect spillover effects | ||
| Prospects of skilled migration boost human capital in low-income nations. A net brain gain is possible with a controlled emigration rate | ||
| Developing countries benefit when citizens use skills where rewards are highest. Yet, without transfers, emigration can harm those left behind, affecting factor prices and local public goods financing | ||
| The estimated marginal products significantly exceed wages, with a more pronounced disparity for highly educated workers | ||
| Early human development upgrades drive subsequent economic growth, fostering a positive cycle of improved economic growth and enhanced human development | ||
| Educated workers, with diverse experiences and knowledge, excel in problem-solving and creativity, promoting innovations in the process | ||
| The inclusion of education enrollment, spending, political measures, initial output, and inflation enhances the positive impact of education on growth | ||
| University education and scientific research positively impact neighboring firms’ technological performance, benefiting from both scientific work and graduates in a province | ||
| Young high-skilled workers show a nine percentage-point employment gain over older workers, with a higher likelihood of quality jobs, reducing skill mismatch | ||
| Exploratory analysis reveals significant positive economic impact from teaching, research, and entrepreneurship | ||
| Migration brings diverse skills, fostering innovation and economic growth. However, increased heterogeneity may hinder social cohesion, creating coordination barriers and affecting development negatively | ||
| A one-month increase in companies’ workforce schooling level reduces the probability of reported skill mismatch by −3.0% points | ||
| Entrepreneurship education participants show increased learning and inspiration, but the change in entrepreneurial intentions is not significantly different from non-participants | ||
| Universities prioritize industry-specific skills for broader employability, while firms aim to leverage collaborations for training students with firm-specific skills efficiently | ||
| Weak human capital dilution allows faster population growth to accelerate human capital accumulation, technological progress, and productivity. Advanced knowledge sustains growth despite a declining population | ||
| Education contributes to global development through individual benefits and increased social returns in poorer countries | ||
| PhD recruitment boosts firm-university collaboration and R&D service purchases. Losing PhDs affects collaboration, but not R&D acquisition | ||
| Entrepreneurial Human Capital’s positive impact extends to various education and age groups but diminishes with the oldest cohorts | ||
| Over two-thirds of global youth lack basic skills, varying from 24% in North America to 89% in South Asia and 94% in Sub-Saharan Africa | ||
| Higher human capital formation in the source country increases the risk of emigration. Unexpectedly, greater emigration can push the source economy out of the stagnation trap | ||
Source(s): Authors’ own elaboration
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