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The B.E. Journal of Macroeconomics

Editor-in-Chief: Abraham, Arpad / Cavalcanti, Tiago

Ed. by Carceles-Poveda , Eva / Debortoli, Davide / Kambourov, Gueorgui / Lambertini, Luisa / Pavoni, Nicola / Ruhl, Kim

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Human Capital Composition, R&D and the Increasing Role of Services

Tiago Neves Sequeira1 / Ana B Reis2

1Departamento de Gestão e Economia - Universidade da Beira Interior, Faculdade de Economia - Universidade Nova de Lisboa,

2Universidade Nova de Lisboa, Faculdade de Economia,

Citation Information: Topics in Macroeconomics. Volume 6, Issue 1, Pages 1–25, ISSN (Online) 1534-5998, DOI: 10.2202/1534-5998.1343, June 2006

Publication History

Published Online:
2006-06-01

We relate the negative correlation between income and the ratio of high to low-tech human capital and the positive correlation between income and investment on R&D, both present in developed countries, to the transition to a services economy. To this end a growth model with endogenous innovation and accumulation of high-tech and low-tech human capital is developed. We consider a negative effect of technological development on the accumulation of high-tech human capital and that services are relatively intensive in low-tech human capital. We confirm the model implications quantitatively in a calibration exercise.

Keywords: human capital composition; high-tech human capital; R&D; services

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[1]
TIAGO NEVES SEQUEIRA
The Manchester School, 2008, Volume 76, Number 4, Page 436

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