Political Regime and Human Capital: A Cross-Country Analysis.

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

SUBMITTER: Klomp J 

PROVIDER: S-EPMC3560949 | biostudies-literature | 2013 Mar

REPOSITORIES: biostudies-literature