The Education-growth Nexus Across OECD Countries: Schooling Levels and Parameter Heterogeneity

More education is good for growth but what kind of education? This paper tries to contribute to this discussion along two dimensions. We try to disentangle the relative growth returns of primary, secondary and tertiary education, while at the same time accounting for heterogeneity in the relationship among OECD countries. To achieve our goal we estimate a convergence regression derived from a human capital-augmented exogenous growth model using the Pooled Mean Group estimator proposed by Pesaran, Shin and Smith (1999) that imposes common long-run relationships across countries while allowing for heterogeneity in the short run responses and intercepts. The use of estimators that allow for a greater degree of parameter heterogeneity than is common in empirical growth studies improves the results of the estimation of the education-schooling levels-growth link: we detect a positive and significant relationship not only between higher education and growth but also between growth and either secondary or primary education. Thus, the evidence analyzed here points to the need to develop empirical growth studies that consider the existence of a higher degree of heterogeneity in cross-country studies, provided there are enough time series observations.schooling levels, education, economic growth, dynamic heterogeneous panels

Channels of transmission of inequality to growth: A survey of the theory and evidence from a Portuguese perspective

We review the theoretical and empirical literature on the relationship between inequality and economic growth from the perspective of the Portuguese economy in order to identify the correct (predicted) sign for the relationship in this particular country and the underlying mechanisms that explain it. Different mechanisms relating inequality and economic growth can be at stake explaining why different countries can experience different outcomes in the same period of time or why the same country experiences different outcomes in different periods of time. It is thus fundamental to correctly identify the channels of transmission of inequality to growth in the Portuguese economy. Ideally, all the mechanisms selected should be tested, but prior judgments should also lead us to produce a ranking of the mechanisms according to its relevance for the economy under analysis. This correct identification and ranking leads to more accurate policy recommendations as far as redistributive policies for the Portuguese economy are concerned.Inequality; Growth; Portugal.

Education Composition and Growth: A Pooled Mean Group Analysis of OECD Countries

This paper uses the pooled mean group (PMG) estimator and a dataset restricted to OECD countries to examine the relationship between different levels of education, i.e. between education composition and growth. The PMG estimator allows a greater degree of parameter heterogeneity than the usual estimator procedures used in empirical growth studies by imposing common long run relationships across countries while allowing for heterogeneity in the short run responses and intercepts. Results point to a significant longterm relationship not only between higher education and growth but also between lower schooling levels and growth. This indicates that public spending on education in OECD countries should be spread across the different levels of education in a balanced way.Levels of education, Economic growth, Dynamic heterogeneous panels.

Human capital, mechanisms of technological diffusion and the role of technological shocks in the speed of diffusion: Evidence from a panel of Mediterranean countries

Our main goal is to ascertain the importance of human capital as a facilitator of technological diffusion in a sample of seven Mediterranean countries (Algeria, Cyprus, Israel, Egypt, Syria, Tunisia, and Turkey) for the period 1960-2000. First, we estimate the technological progress growth rate and the technological gap between each country in our sample and the technological leader (the USA), following the methodology of Benhabib and Spiegel (2002). We then address the issue of the importance of technology diffusion for the TFP growth rate through the Nelson and Phelps (1966) hypothesis - the potential speed of technology diffusion is inversely related to the degree of technological backwardness of the follower country and its ability to absorb new technologies will depend positively on its human capital level. The non-linear specification of the TFP growth rate proposed by Benhabib and Spiegel (2002) is estimated to control for the type of technological diffusion: logistic or exponential. The empirical analysis is applied to two samples: a smaller one consisting of the above-mentioned countries, and a larger one that includes some European countries. First, we studied the unit root characteristic of the TFP growth rate series using unit root panel tests. The results obtained allowed the use of traditional econometric methods for both equations. For the first equation estimations were performed using the NLLS estimation procedure, as it is a non-linear equation. The second equation, was estimated using OLS with robust errors, the fixed effects model and the random effects model, as it is a linear equation. The empirical importance of human capital in fostering technological diffusion is also addressed through the FDI channel, by which technology is transferred from the leader to the followers. The host economy needs a sufficient level of human capital in order to apply the technology of the leader, i.e., the stock of human capital of the follower country limits its absorptive capability. We also analyse the role of human capital as a facilitator of the diffusion of a particular type of technology, ICT, where there is a role for different educational levels. In both cases we take Lee (2000) as the basic framework for our estimations. Finally, the last part of the paper discusses the importance of technological shocks to the process of technological diffusion. The speed of technological diffusion, and consequently the evolution of cross-country differences in GDP growth rates and levels, depend, to a large extent, on exogenous shocks. We propose to model technological shocks for each of the seven countries in our sample in a simple VAR model with four variables: their TFP growth rate, the logarithm of GDP per capita, the logarithm of investment per capita, and the logarithm of the stock of human capital.Economic growth, Education, Human capital, Panel data, VAR models

Education and growth: an industry-level analysis of the Portuguese manufacturing

TThis paper investigates the education–growth link at the more disaggregate industry level in the Portuguese manufacturing sector with a focus on different levels of education. The insights from new growth theory and a modified and augmented version of the Benhabib and Spiegel (1994) specification are the basis for the empirical analysis of the role of education in innovation and imitation activities highlighting a role for specific schooling levels across industries according to their technological characteristics and its interaction with international trade. We use data for the period 1986–1997, fourteen Portuguese manufacturing industries and panel data econometric techniques. Our most robust finding concerns the relevance of technology spillovers embodied in imports for productivity growth, as long as manufacturing industries employ workers with skills provided by secondary education. The Portuguese manufacturing industry cannot rely on automatic technological catch up for productivity growth so active trade and education policies are crucial to recover from the present bottom position in the rank of OECD productivity levels.education, innovation, technology diffusion, productivity growth, panel data

Outras vidas para o cinema

O projecto “Principais tendências no cinema português contemporâneo” nasceu no Departamento de Cinema da ESTC, com o objectivo de desenvolver investigação especializada a partir de um núcleo formado por alunos da Licenciatura em Cinema e do Mestrado em Desenvolvimento de Projecto Cinematográfico, a que se juntaram professores-investigadores membros do CIAC e convidados. O que agora se divulga corresponde a dois anos e meio de trabalho desenvolvido pela equipa de investigação, entre Abril de 2009 e Novembro de 2011. Dada a forma que ele foi adquirindo, preferimos renomeá-lo, para efeitos de divulgação, “Novas & velhas tendências no cinema português contemporâneo”.QUAIS SÃO, hoje, as principais características do desenvolvimento de projectos para cinema em Portugal? O que pensam realizadores cinematográficos, produtores, distribuidores e exibidores sobre o cinema português? Que conclusões tirar das suas opiniões, relatos de experiências e análises da situação contemporânea? Que novas tendências surgiram no cinema português, nos primeiros anos do séc. XXI?Fundação para a Ciência e Tecnologia, Centro de Investigação em Artes e Comunicação, Instituto do Cinema e do Audiovisual, Ministério da Cultura, Escola Superior de Teatro e Cinema

Catarina Alves Costa: a escrita é um processo importantíssimo no cinema

O projecto “Principais tendências no cinema português contemporâneo” nasceu no Departamento de Cinema da ESTC, com o objectivo de desenvolver investigação especializada a partir de um núcleo formado por alunos da Licenciatura em Cinema e do Mestrado em Desenvolvimento de Projecto Cinematográfico, a que se juntaram professores-investigadores membros do CIAC e convidados. O que agora se divulga corresponde a dois anos e meio de trabalho desenvolvido pela equipa de investigação, entre Abril de 2009 e Novembro de 2011. Dada a forma que ele foi adquirindo, preferimos renomeá-lo, para efeitos de divulgação, “Novas & velhas tendências no cinema português contemporâneo”.QUAIS SÃO, hoje, as principais características do desenvolvimento de projectos para cinema em Portugal? O que pensam realizadores cinematográficos, produtores, distribuidores e exibidores sobre o cinema português? Que conclusões tirar das suas opiniões, relatos de experiências e análises da situação contemporânea? Que novas tendências surgiram no cinema português, nos primeiros anos do séc. XXI?Fundação para a Ciência e Tecnologia, Centro de Investigação em Artes e Comunicação, Instituto do Cinema e do Audiovisual, Ministério da Cultura, Escola Superior de Teatro e Cinema

Inequality and Growth in Portugal: a time series analysis

Following the recent resurgence of interest on the relationship between inequality and growth and the considerable debate that remains on its sign, we examine this nexus for Portugal during the period 1985–2007 using a time series approach. The results, using different time series methodologies, suggest that earnings inequality has a negative impact on output thus confirming the view that inequality is detrimental to growth. Moreover, according to the results from the impulse response functions based on the preferred trivariate structural VAR model, these effects last in some cases for three years after the inequality shock. As far as education is concerned, the third variable apart from output and inequality considered in our SVAR models, the evidence does not support the theoretical prediction that more inequality reduces human capital accumulation, pointing in fact in the opposite direction: an increase in earnings inequality leads to more educated workers. Thus, the evidence of a negative influence of inequality on output seems to be explained not by the fact that more inequality leads to less human capital accumulation but because it implies more redistribution, with the associated distortionary effects from taxes on investment.output, inequality, education, Hendry-Krolzig methodology, causality, SVAR.

Mind the Gap: Education Inequality at the Regional Level in Portugal, 1986-2005

Portugal stands as one of the most unequal countries in terms of income among the developed countries. Over the period 1980-2005, income inequality kept high, fostered mainly by a monotonic increase in earnings inequality. Given the close link between education and earnings, it is of major importance to study the distribution of education. This paper examines the distribution of education at the regional level in Portugal between 1986 and 2005. Our results indicate that education inequality decreased for the whole country as the average education level of the workforce rose, over the sample years. This finding does not apply at the regional level however, with several districts initially poor in terms of education exhibiting an increase in education inequality. The evidence also supports the existence of a Kuznets curve of education: as the average level of education rises, education inequality first increases, and, after reaching a peak at 5.13 years of schooling, starts declining.

The impact of EU integration on the Portuguese distribution of employees' earnings

This paper investigates the impact of Portugal’s accession to the EU on employees’ earnings inequality using data for the years 1985 and 1991 from the Quadros de Pessoal database. The distributions of earnings for the two years are compared using distinct empirical methodologies to better clarify the nature of inequality at the aggregate level: cardinal measures of inequality and the Lorenz stochastic dominance approach (Araar and Duclos, 2007); the Relative Distribution approach; and covariate (education) decomposition. Our results indicate that during the period under analysis the median and average earnings of employees increased, pointing to a sort of honeymoon effect of EU integration on Portuguese employees’ earnings, but which was characterized by an increase in earnings inequality. Relative to 1985, in 1991 there were more employees with very low earnings but also more 1991 employees with high earnings and there were also more employees at the bottom end and at the top end of the earnings distribution. Moreover, the analysis of the relative earnings distribution by level of education reveals substantial differences for the top end of the distributions with the proportion of 1991 employees receiving the highest earnings higher than for the original 1985 cohort. These results deserve a deeper investigation since inequality may jeopardize future growth of the Portuguese economy. Similar analysis should also be carried out for recent and predictable future members of the EU.earnings inequality, education inequality, relative distribution, covariate decomposition