Year of Graduation
Institutions and Human Capital: Complements or Substitutes?
Joint HSE-NES Undergraduate Program in Economics
Human capital is an important factor of social welfare and the former, in its turn, is formed by education to a great extent. Having said that, education does not always contribute to an economic growth which is the most common measure of social welfare. We suppose that this is due to the quality of institutions. And the mechanism is an allocation of talent. The worse the institutions are, the more talented people choose rent-seeking occupations trying to get higher profit due to these imperfections. A lot was said about influence of institutions, education and allocation of talent on social welfare but nobody tried to integrate all directions of research. We will close this gap using data for 180 countries and 85 federal subjects of the Russian Federation and expect that this study will be relevant for policy making and will contribute to the solution of social and economic problems.