Working Paper: CEPR ID: DP3556
Authors: Michael Spagat
Abstract: Transition economies have an initial condition of high human capital relative to living standards. I explore the possible implications of this key fact by surveying and adapting literature on growth and inequality. I focus especially on the long run and policy options.
Keywords: constraints; educational reform; growth; human capital; inequality; liquidity; long run; transition economies
JEL Codes: I20; O15; P20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| human capital deterioration (J24) | lower living standards (I31) |
| lack of investment in human capital (J24) | failure in intergenerational transmission of education (I24) |
| failure in intergenerational transmission of education (I24) | cycle of poverty and educational decline (I24) |
| educational restructuring (I28) | high levels of human capital (J24) |
| public policy interventions (J18) | access to education (I24) |
| public policy interventions (J18) | addressing liquidity constraints (E41) |