Demographic change, human capital, and economic growth in Korea

Jong Suk Han, Jong Wha Lee

Research output: Contribution to journalArticle

Abstract

We construct a measure of human capital using micro datasets on labor composition of age, gender, education, and wage rate and analyze its role in economic growth for the Korean economy. Over the past three decades, human capital has grown steadily at about 1% per year, contrasting to a continuously declining trend of total work-hours. This growth has been driven by the rise of better-educated baby-boom cohorts. A growth accounting exercise shows that human capital contributes significantly to economic growth; it accounted for 0.5% points of annual GDP growth over the period. Human capital is projected to remain a major growth factor over the next two decades as the increase in educational attainment continues. Increased employment rate of elderly or female workers reduces the aggregate human capital growth while increasing the available labor. Polices to improve human capital of female or elderly workers help to increase aggregate human capital growth.

Original languageEnglish
Article number100984
JournalJapan and the World Economy
Volume53
DOIs
Publication statusPublished - 2020 Mar

Fingerprint

population development
Korea
human capital
economic growth
elderly worker
female worker
labor
Economic growth
Demographic change
Human capital
Capital growth
wage
police
economy
gender
trend
education

Keywords

  • Aging
  • Demographic change
  • Education
  • Growth
  • Human capital
  • Training

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

Demographic change, human capital, and economic growth in Korea. / Han, Jong Suk; Lee, Jong Wha.

In: Japan and the World Economy, Vol. 53, 100984, 03.2020.

Research output: Contribution to journalArticle

@article{911052e9a75c43a29926a5af0590dc7d,
title = "Demographic change, human capital, and economic growth in Korea",
abstract = "We construct a measure of human capital using micro datasets on labor composition of age, gender, education, and wage rate and analyze its role in economic growth for the Korean economy. Over the past three decades, human capital has grown steadily at about 1{\%} per year, contrasting to a continuously declining trend of total work-hours. This growth has been driven by the rise of better-educated baby-boom cohorts. A growth accounting exercise shows that human capital contributes significantly to economic growth; it accounted for 0.5{\%} points of annual GDP growth over the period. Human capital is projected to remain a major growth factor over the next two decades as the increase in educational attainment continues. Increased employment rate of elderly or female workers reduces the aggregate human capital growth while increasing the available labor. Polices to improve human capital of female or elderly workers help to increase aggregate human capital growth.",
keywords = "Aging, Demographic change, Education, Growth, Human capital, Training",
author = "Han, {Jong Suk} and Lee, {Jong Wha}",
year = "2020",
month = "3",
doi = "10.1016/j.japwor.2019.100984",
language = "English",
volume = "53",
journal = "Japan and the World Economy",
issn = "0922-1425",
publisher = "Elsevier",

}

TY - JOUR

T1 - Demographic change, human capital, and economic growth in Korea

AU - Han, Jong Suk

AU - Lee, Jong Wha

PY - 2020/3

Y1 - 2020/3

N2 - We construct a measure of human capital using micro datasets on labor composition of age, gender, education, and wage rate and analyze its role in economic growth for the Korean economy. Over the past three decades, human capital has grown steadily at about 1% per year, contrasting to a continuously declining trend of total work-hours. This growth has been driven by the rise of better-educated baby-boom cohorts. A growth accounting exercise shows that human capital contributes significantly to economic growth; it accounted for 0.5% points of annual GDP growth over the period. Human capital is projected to remain a major growth factor over the next two decades as the increase in educational attainment continues. Increased employment rate of elderly or female workers reduces the aggregate human capital growth while increasing the available labor. Polices to improve human capital of female or elderly workers help to increase aggregate human capital growth.

AB - We construct a measure of human capital using micro datasets on labor composition of age, gender, education, and wage rate and analyze its role in economic growth for the Korean economy. Over the past three decades, human capital has grown steadily at about 1% per year, contrasting to a continuously declining trend of total work-hours. This growth has been driven by the rise of better-educated baby-boom cohorts. A growth accounting exercise shows that human capital contributes significantly to economic growth; it accounted for 0.5% points of annual GDP growth over the period. Human capital is projected to remain a major growth factor over the next two decades as the increase in educational attainment continues. Increased employment rate of elderly or female workers reduces the aggregate human capital growth while increasing the available labor. Polices to improve human capital of female or elderly workers help to increase aggregate human capital growth.

KW - Aging

KW - Demographic change

KW - Education

KW - Growth

KW - Human capital

KW - Training

UR - http://www.scopus.com/inward/record.url?scp=85074768118&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85074768118&partnerID=8YFLogxK

U2 - 10.1016/j.japwor.2019.100984

DO - 10.1016/j.japwor.2019.100984

M3 - Article

AN - SCOPUS:85074768118

VL - 53

JO - Japan and the World Economy

JF - Japan and the World Economy

SN - 0922-1425

M1 - 100984

ER -