Learning Together Boosts Economy: Human Capital Externalities Drive Growth
Learning externalities play a big role in economic growth. A recent study estimated these externalities by comparing private and social returns on human capital. The results show that learning externalities are significant, with a social rate of return on human capital at 9.0% compared to a private rate of return at 6.6%. This suggests that investing in human capital not only benefits individuals but also boosts overall economic growth.