The empirical literature on the contributions of human capital investments to economic growth shows mixed results. While evidence from OECD countries demonstrates that human capital accumulation is associated with growth accelerations, the substantial efforts of developing countries to improve access to and quality of education, as a means for skill accumulation, did not translate into higher income per capita. In this Element, we propose a framework, building on the principles of 'growth diagnostics', to enable practitioners to determine whether human capital investments are a priority for a country's growth strategy. We then discuss and exemplify different tests to diagnose human capital in a place, drawing on the Harvard Growth Lab's experience in different development context, and discuss various policy options to address skill shortages.
Cambridge Elements are a new concept in academic publishing and scholarly communication, combining the best features of books and journals. They consist of original, concise, authoritative, and peer-reviewed scholarly and scientific research, organised into focused series edited by leading scholars, and provide comprehensive coverage of the key topics in disciplines spanning the arts and sciences.
Regularly updated and conceived from the start for a digital environment, they provide a dynamic reference resource for graduate students, researchers, and practitioners.
This paper analyzes the changes in Saudi employment and unemployment between 2009 and 2018 and argues that a supply-demand skill mismatch exacerbated by insufficient job creation, and prevalent Saudi preferences and beliefs about employment underpin the high unemployment problem that coexists with low Saudi employment in the private sector in the country.