Dispersion of human capital and economic growth

Based on a theoretical consideration of human capital production technology, this study empirically investigates the growth implication of dispersion of population distribution in terms of educational attainment levels. Based on a pooled 5-year interval time-series data set of 94 developed and developing countries for 1960-1995, the study finds that dispersion index as well as average index of human capital positively influences productivity growth. Given limited social resources for human capital investment, the finding implies that education policy that creates more dispersion in the human capital will promote growth. (c) 2006 Elsevier Inc. All rights reserved.