Abstract

MONTERUBBIANESI, Pablo Daniel; ROJAS, Mara Leticia  and  DABUS, Carlos Darío. Education and Health: Evidence of Threshold Effects on Economic Growth. Lect. Econ. [online]. 2021, n.94, pp.195-231.  Epub Apr 16, 2021. ISSN 0120-2596.  https://doi.org/10.17533/udea.le.n94a342459.

This work analyzes the effect of education and health on economic growth using a fixedeffect panel threshold model for 86 economies from 1960 to 2010. In accordance with non-linearities literature, the work verifies the existence of two income thresholds, after which health and education affect growth differently. Although the magnitude of the effect of health on economic growth is variable, the relationship between them is always positive. Nonetheless, education has only a positive effect on growth after the second income threshold. The intuition is that a healthier population implies a better economic performance, regardless of the development stage. Differently, a higher education should have favorable effects only from a minimal level of income compatible with a minimal physical capital.

Clasificación JEL: C1, O4, O5.

Keywords : education; health; growth; threshold effects; panel data.

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