The paper examines the impact of human capital on the growth of total factor productivity in European countries. Using the
modified Nelson-Phelps framework, we estimate regressions based on panel data for the period 1950-2014, measured as 5-year
averages. The GMM estimates show the positive and statistically significant effects of human capital on technological progress
and diffusion. However, the results do not favour the convergence of all countries in the sample to the technological frontier.
In addition to countries that are not yet members of the EU, our estimates suggest that peripheral EU countries have a weak
convergence rate due to insufficient investment in human capital.
Forschungsbereich:Arbeitsmarkt, Einkommen und soziale Sicherheit