한국생산성학회

Investments to human capital have important roles in securing human resources with enhanced skill-sets to create new knowledge, and boosting innovative capacity of the knowledge-based economy, However, since it is not possible to expand the investments to human capital indefinitely due to tight budgets of individuals and the government, it is crucial to think about how to effectively generate rates of return to investment in education from the economy-wide perspective. In this study, we use a knowledge-based CGE model to quantitatively analyze the macroeconomic effects of the investments in education focusing on Korea, in order to estimate returns to investments in education in accordance of policy scenarios which cover quantitative expansion of investments in education, as well as the quality improvement of the educational system in terms of the wave of rapid technological innovation. As a result, it is confirmed that the returns to investments in education of Korea can be achieved ranging from 5.39% to 7.29%, depending on the designed policy scenario. In addition, by comparing macroeconomic effects by scenarios, it is found that it is important for Korea economy to establish lifelong education systems that promotes active accumulation and improvement of workers' skills, strengthen on-the-job training and workplace-based vocational training programs, and make reforms of educational system to cope with the rapid changes of technological innovation.