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Political Regime and Human Capital: A Cross-Country Analysis.
1Social Sciences Group, Wageningen University, PO Box 8130, 6700 EW Wageningen, The Netherlands.
Social Indicators Research
|February 5, 2013
Summary
Political regimes significantly impact human capital. Democracy boosts basic human capital, while good governance enhances advanced human capital, with income mediating these effects.
Area of Science:
- Political Science
- Economics
- Human Capital Development
Background:
- Understanding the interplay between political systems and human capital is crucial for development.
- Existing research often treats human capital monolithically, overlooking nuanced dimensions.
Purpose of the Study:
- To investigate the distinct effects of political regime dimensions on different measures of human capital.
- To explore the mediating role of income in the relationship between political factors and human capital.
Main Methods:
- Utilized a two-step structural equation model.
- Employed factor analysis on 16 human capital indicators to create basic and advanced human capital measures.
- Estimated a cross-sectional structural model for approximately 100 countries.
Main Results:
- Democracy shows a positive association with basic human capital.
- Regime and government instability negatively correlate with basic and advanced human capital, respectively.
- Governance positively relates to advanced human capital, with indirect positive effects on both human capital types via income.
Conclusions:
- Political regime characteristics, including democracy and governance, are significant determinants of human capital.
- Instability within political regimes hinders human capital accumulation.
- Income acts as a key channel through which political factors influence human capital development.
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