Human Capital Spending, Inequality, and Growth in Middle-Income Asia
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This paper uses National Transfer Accounts data to analyze the effect of human capital investment in Asian countries on economic growth, inequality, and fiscal balance.
Using data from the National Transfer Accounts, the authors analyze the impact of human capital spending on income inequality and economic growth in middle-income Asia. They find that human capital has a significant effect on labor productivity and, hence, output. The effect is more pronounced for poorer households, pointing to a positive link between human capital and inclusive growth in Asia.