Abstract
We examine the relationship between different dimensions of the political regime in place and human capital using a two-step
structural equation model. In the first step, we employ factor analysis on 16 human capital indicators to construct two new
human capital measures (basic and advanced human capital). In the second step, we estimate the impact of our political variables
on human capital, using a cross-sectional structural model for some 100 countries. We conclude that democracy is positively
related to basic human capital, while regime instability has a negative link with basic human capital. Governance has a positive
relationship with advanced human capital, while government instability has a negative link with advanced human capital. Finally,
we also find an indirect positive effect of governance and democracy on both types of human capital through their effect on
income.
structural equation model. In the first step, we employ factor analysis on 16 human capital indicators to construct two new
human capital measures (basic and advanced human capital). In the second step, we estimate the impact of our political variables
on human capital, using a cross-sectional structural model for some 100 countries. We conclude that democracy is positively
related to basic human capital, while regime instability has a negative link with basic human capital. Governance has a positive
relationship with advanced human capital, while government instability has a negative link with advanced human capital. Finally,
we also find an indirect positive effect of governance and democracy on both types of human capital through their effect on
income.
- Content Type Journal Article
- Pages 1-29
- DOI 10.1007/s11205-011-9983-6
- Authors
- Jeroen Klomp, Social Sciences Group, Wageningen University, PO Box 8130, 6700 EW Wageningen, The Netherlands
- Jakob de Haan, Faculty of Economics and Business, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands
- Journal Social Indicators Research
- Online ISSN 1573-0921
- Print ISSN 0303-8300