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EDUCATION, HEALTH, AND ECONOMIC DEVELOPMENT

Published online by Cambridge University Press:  20 December 2017

Dong-Hyeon Kim ,
Yi-Chen Wu  and
Shu-Chin Lin
Dong-Hyeon Kim
Affiliation:
Korea University
Yi-Chen Wu
Affiliation:
Soochow University
Shu-Chin Lin*
Affiliation:
SungKyunKwan University
*
Address correspondence to: Shu-Chin Lin, Department of Economics, SungKyunKwan University, 25-2 Sungkyunkwan-ro, Jongno-gu, Seoul 110-745, Republic of Korea; e-mail: sclin@skku.edu
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Abstract

This paper examines the relationships of income with education and health using heterogeneous panel cointegration techniques to account for the potential cross-country heterogeneity in the effects of education and health. Our main results are: (i) education and health are, on average, income-enhancing; (ii) for different schooling levels, although primary education lowers income, both secondary and tertiary education raise income with larger impacts for the former than the latter, on average; (iii) there is considerable heterogeneity in the effects of education and health on income across countries; and (iv) the effect of education (health) on income tends to be greater (smaller) in countries with higher levels of development, greater (less) trade openness, less abundant natural resources, less corruption, higher levels of democracy, and a more homogeneous society.

Keywords

EducationHealthEconomic DevelopmentHeterogeneous Panels
Type
Articles
Information
Macroeconomic Dynamics , Volume 23 , Issue 2 , March 2019 , pp. 837 - 869
Copyright
Copyright © Cambridge University Press 2017 

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Footnotes

We thank two anonymous reviewers for helpful comments. The usual disclaimer applies.

References

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