Francesco Cinnirella|Jochen Streb
The role of human capital and innovation in economic development: evidence from post-Malthusian Prussia
Ifo Institute for Economic Research|University of Mannheim
effect human capital growth involves multiple channels one hand increase human capital directly affects economic growth enhancing labor productivity production hand human capital important input rd therefore increases labor productivity indirectly accelerating technological change addition different types human capital basic higher education trainingonthejob might play different roles production innovation activities merge individual data valuable patents granted prussia late nineteenthcentury countylevel data literacy craftsmanship secondary schooling income tax revenues explore complex relationship various types human capital innovation income find second industrial revolution seen transition period comes role human capital preceding first industrial revolution useful knowledge embodied master craftsmen related innovation especially independent inventors subsequent twentieth century quality basic education associated workers productivity firms rd processes final step show literacy also negative effect fertility increased innovation general findings support notion accumulation basic human capital crucial transition modern economic growth