IMPACT OF HUMAN CAPITAL ON PRODUCTIVITY GROWTH IN DIFFERENT LABOUR-SKILLED BRANCHES

The primary objective of this study is to analyse the impact of human capital accumulation on productivity growth in a sectoral approach. In our estimations, we followed a specific taxonomy to identify the features of output and employment growth tendencies in four different labour-skilled branches in OECD countries. Besides determining the differences of output and labour structure by standard descriptive statistics, we used a dynamic panel regression method to investigate the connection between physical and human capital, employment, and productivity growth in each sector. All in all, we found an increasing role of human capital (HC) from the period between 1985 and 2007. Analysing the time series panel data of these countries, our results also yield valid relationships between the level of education and productivity growth.