Educational level, GDP & wages : a study on the direction of causality
This paper examines the causal relationships between labour force education levels and real GDP per capita, as well as average real wages in Singapore from 1980 to 2009. As investment in education is generally costly and any potential benefits are not immediately realised or observable, it is of eco...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/48614 |
| _version_ | 1811678979956932608 |
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| author | Ang, Hock Yick Pan, Zheng Hong Lim, Sajeev Prasad |
| author2 | Chew Seow Lung, Rosalind |
| author_facet | Chew Seow Lung, Rosalind Ang, Hock Yick Pan, Zheng Hong Lim, Sajeev Prasad |
| author_sort | Ang, Hock Yick |
| collection | NTU |
| description | This paper examines the causal relationships between labour force education levels and real GDP per capita, as well as average real wages in Singapore from 1980 to 2009. As investment in education is generally costly and any potential benefits are not immediately realised or observable, it is of economic value to determine if investment in education yields positive returns; both at the macro level, in terms of economic growth, and at the micro level, in terms of wages. We begin with a preliminary analysis on the trends and correlation of these variables and follow up by conducting an empirical analysis on them. To determine the causal relationships, we employ the Granger causality test. The empirical results show evidence of positive unidirectional causality from labour force education levels to real GDP per capita and from average real wages to labour force education levels. Lastly, we discuss possible explanations for the results above. |
| first_indexed | 2024-10-01T03:01:52Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/48614 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:01:52Z |
| publishDate | 2012 |
| record_format | dspace |
| spelling | ntu-10356/486142019-12-10T13:22:21Z Educational level, GDP & wages : a study on the direction of causality Ang, Hock Yick Pan, Zheng Hong Lim, Sajeev Prasad Chew Seow Lung, Rosalind School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory::Macroeconomics This paper examines the causal relationships between labour force education levels and real GDP per capita, as well as average real wages in Singapore from 1980 to 2009. As investment in education is generally costly and any potential benefits are not immediately realised or observable, it is of economic value to determine if investment in education yields positive returns; both at the macro level, in terms of economic growth, and at the micro level, in terms of wages. We begin with a preliminary analysis on the trends and correlation of these variables and follow up by conducting an empirical analysis on them. To determine the causal relationships, we employ the Granger causality test. The empirical results show evidence of positive unidirectional causality from labour force education levels to real GDP per capita and from average real wages to labour force education levels. Lastly, we discuss possible explanations for the results above. Bachelor of Arts 2012-04-27T06:47:00Z 2012-04-27T06:47:00Z 2012 2012 Final Year Project (FYP) http://hdl.handle.net/10356/48614 en Nanyang Technological University 60 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic theory::Macroeconomics Ang, Hock Yick Pan, Zheng Hong Lim, Sajeev Prasad Educational level, GDP & wages : a study on the direction of causality |
| title | Educational level, GDP & wages : a study on the direction of causality |
| title_full | Educational level, GDP & wages : a study on the direction of causality |
| title_fullStr | Educational level, GDP & wages : a study on the direction of causality |
| title_full_unstemmed | Educational level, GDP & wages : a study on the direction of causality |
| title_short | Educational level, GDP & wages : a study on the direction of causality |
| title_sort | educational level gdp wages a study on the direction of causality |
| topic | DRNTU::Social sciences::Economic theory::Macroeconomics |
| url | http://hdl.handle.net/10356/48614 |
| work_keys_str_mv | AT anghockyick educationallevelgdpwagesastudyonthedirectionofcausality AT panzhenghong educationallevelgdpwagesastudyonthedirectionofcausality AT limsajeevprasad educationallevelgdpwagesastudyonthedirectionofcausality |