Effective Human Capital and Long-run Economic Growth *

This paper investigates how human capital affects economic growth. Previous empirical works on this issue can be categorized by their theoretical grounds. Each of them provides different point of view on the role of human capital in economic growth, so the empirical works have been interpreted as a kind of empirical evidence of the growth models. This paper provides some empirical evidence on the issue by introducing a measure of effective human capital which quantifies the amounts of human capital effectively used for economic growth. According to the empirical results based on the effective human capital, human capital seems to lead economic growth as the way that the endogenous growth model explains.