A Hierarchy of Human Capital and Economic Growth

Abstract

This paper focuses on the relationship between economic growth

and the hierarchical structure of human capital of different levels of

abstraction. The model is the usual endogenous growth model with

the inclusion of Beckmann's "span of control" technology. Major

findings are: (1) the optimal structure of human capital is pyramidal.

and (2) when there exist externalities of technology from the

most developed foreign countries to the catching-up. the catchingup

country shows more rapid economic growth and relatively more

investment on the lower level human capital than on the higher.

The comparison between the U.S.A. and Japanese or Korean data

provides the empirical support for these implications.