Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114037
Authors: 
Baptist, Simon
Teal, Francis J.
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9157
Abstract: 
Macro analysis of the sources of income differences has produced very different results as to the importance of education. In this paper we investigate the roles of education and technology in explaining differences in firm level productivity across Ghana and South Korea. The labour productivity differentials across these firms exceed those implied by macro analysis. Median value-added per employee is over thirty times higher in South Korean than in Ghanaian manufacturing firms. We show that if we allow for a non-linear effect of education on output the whole of the average productivity differences across the countries can be explained. We discuss the policy implications that flow from this finding.
Subjects: 
African and Asian manufacturing
productivity
efficiency
human capital
JEL: 
O14
D24
Document Type: 
Working Paper

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