2024/01/18 by Crespo Cuaresma, Jesus, Havettová, Miroslava, Lábaj, Martin
paper · doi:10.57938/cd55b6b1-32e3-4594-a64b-c1c792cf24f1
We employ income projection models based on human capital dynamics in order to assess quantitatively <br/>the role that educational improvements are expected to play as a driver of future income convergence in Europe. <br/>We concentrate on income convergence dynamics between emerging economies in Central and Eastern Europe and Western European countries <br/>during the next 50 years. Our results indicate that improvements in human capital contribute significantly to the <br/>income convergence potential of European emerging economies. Using realistic scenarios, we quantify the effect <br/>that future human capital investments paths are expected to have in terms of speeding up the income convergence process in the region. <br/>The income projection exercise shows that the returns to investing in education in terms of income convergence in Europe could be sizeable, <br/>although it may take relatively long for the poorer economies of the region to rip the growth benefits.