The Role of Human Capital

Our goal is the estimation of country - level production function aimed at understanding the role of human capital. I analyse the effect of education especially the effect of the share of college graduates in prime-age population (between 25 - 54 years) on the European Union (EU) countries'' labour productivity. Here an important issue is efficiency of tertiary education institutions. I split the ratio of human capital to observe it from different aspects and compare an effect of lower and upper tertiary educated by specializations and by gender.