Boosting human capital investment leads to sustained economic growth and prosperity
This article looks at how changes in saving rates and income distribution affect investment in human capital and economic growth. The study shows that the ratio of physical to human capital remains constant in the long run, allowing both factors to grow at the same rate. This growth rate depends on technological factors and the amount of skills invested in human capital. Interestingly, population growth is not necessary for economic growth, and real income is directly linked to the level of human capital, regardless of population size.