The B.E. Journal of Macroeconomics
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Human Capital Composition, R&D and the Increasing Role of Services
1Departamento de Gestão e Economia - Universidade da Beira Interior, Faculdade de Economia - Universidade Nova de Lisboa, (email)
2Universidade Nova de Lisboa, Faculdade de Economia, (email)
Citation Information: Topics in Macroeconomics. Volume 6, Issue 1, Pages 1–25, ISSN (Online) 1534-5998, DOI: 10.2202/1534-5998.1343, June 2006
- Published Online:
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.
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