Housing Quality and Human Capital Formation in Developing Countries

Main Article Content

Guilherme Shirazawa
Marta Simões

Abstract

The main objective of this work is to analyse the relationship between the quality of housing and human capital formation in the context of developing countries. The analysis attempts to fill a gap in the current literature regarding the lack of empirical studies that address the impact that living conditions can have on human capital. The study was performed using cross-sectional data, mostly taken from the UNESCO database, for 52 low and middle-income countries. The estimated empirical models consider average years of schooling as the dependent variable and as the explanatory variable of interest the proportion of the population living in houses with below minimum quality standards . The OLS results obtained suggest a negative association between housing quality and average years of schooling, but with little or no statistical significance, making the empirical analysis inconclusive. We pose that this result might relate to the comparability of the housing quality data provided by UNESCO, highlighting the need to gather more data and produce new, more reliable indicators on the topic.

Article Details

Section

Articles

References

Baldacci, E., Clements, B., Gupta, S., & Cui, Q. 2008. “Social spending, human capital, and growth in developing countries.” World development, 36(8): 1317-1341.

Barro, Robert and Jong-Wha Lee. 2013. “A New Data Set of Educational Attainment in the World, 1950-2010.” Journal of Development Economics, 104:184-198.

Benhabib, J., & Spiegel, M. M. 1994. “The role of human capital in economic development evidence from aggregate cross-country data.” Journal of Monetary economics, 34(2): 143-173.

Blau, David M., Haskell, Nancy L., Haurin, Donald R. 2019. “Are Housing Characteristics Experienced by Children Associated with their Outcomes as Young Adults?” Journal of Housing Economics, 46.

Bradley, R. H., & Putnick, D. L. 2012. “Housing quality and access to material and learning resources within the home environment in developing countries.” Journal of Child development, 83(1): 76-91.

Bramley, Glen & Karley, Noah K. 2007. “Homeownership, Poverty and Educational Achievement: School Effects as Neighbourhood Effects”. Housing Studies, 22(5): 693-721.

Cornell, A., Knutsen, C.H. & Teorell, J. 2020. “Bureaucracy and Growth.” Comparative Political Studies, 53(14): 2246-2282.

Égert, B., Botev, J., & Turner, D. 2020. “The contribution of human capital and its policies to per capita income in Europe and the OECD”. European Economic Review, 129: 1-16

Green, R. K. 1997. “Follow the leader: how changes in residential and non†residential investment predict changes in GDP”. Real Estate Economics, 25(2): 253-270.

Gutiérrez-Romero, R. 2021. “How does inequality affect long-run growth? Cross-industry, cross-country evidence.” Economic Modelling, 95: 274-297.

Hanushek, E. A., & Woessmann, L. 2011. “How much do educational outcomes matter in OECD countries?” Economic policy, 26(67): 427-491.

Harris, R., & Arku, G. 2006. “Housing and economic development: The evolution of an idea since 1945.” Habitat International, 30(4): 1007-1017.

Healy, R. G. 1971. “Effects of improved housing on worker performance.” Journal of Human Resources, 6(3): 297-308.

Hongyu, L., Park, Y. W., & Siqi, Z. 2002. “The interaction between housing investment and economic growth in China”. International real estate review, 5(1): 40-60.

Housing, C., & Council, P. 2001. “Housing and schooling.” The Urban Prospect, 7(2): 1-4.

Köppe Malanski, L. & Póvoa, A. C. S. 2021. “Economic growth and corruption in emerging markets: Does economic freedom matter?” International Economics, 166: 58-70.

Lee, J. W., & Barro, R. J. 2001. “Schooling quality in a cross–section of countries.” Economica, 68(272): 465-488.

Lei, J., & Zhao, Y. 2007. “Technology uses and student achievement: A longitudinal study.” Computers & Education, 49(2): 284-296.

Leviten-Reid, C. & Matthew, R. A. 2018. “Housing Tenure and Neighbourhood Social Capital.” Housing, Theory and Society, 35(3): 300-328.

Matousek, R. & Tzeremes, N.G. 2021. “The asymmetric impact of human capital on economic growth.” Empirical Economics, 60(3): 1309-1334.

Lucas Jr, R. E. 1988. “On the mechanics of economic development.” Journal of monetary economics, 22(1): 3-42.

Mankiw, N. G., Romer, D., & Weil, D. N. 1992. “A contribution to the empirics of economic growth.” The Quarterly Journal of Economics, 107(2): 407-437.

Manzoli, V.; Duarte, A.P.; Simões, M. 2020. “Housing, Inequality and Economic Growth: Evidence from a Sample of Brazilian States”. Economic Analysis 53(1), pp. 42-58.

Mohanty, L.L. & Raut, L.K. 2009. “Home Ownership and School Outcomes of Children: Evidence from the PSID Child Development Supplement.” American Journal of Economics and Sociology, 68: 465-489.

Osei, M.J. & Kim, J. 2020. “Foreign direct investment and economic growth: Is more financial development better?” Economic Modelling, 93: 154-161.

Ouedraogo, R., Sourouema, W.S. & Sawadogo, H. 2021. “Aid, growth and institutions in Sub-Saharan Africa: New insights using a multiple growth regime approach.” World Economy, 44(1): 107-142.

Sanchis-Guarner, R., Montalbán, J., & Weinhardt, F. 2021. “Home Broadband and Human Capital Formation.” CESifo Working Paper 8846

Solow, R. M. 1956. “A contribution to the theory of economic growth.” The quarterly journal of economics, 70(1): 65-94.

Sturn, S. & Epstein, G. 2021. “How much should we trust five-year averaging to purge business cycle effects? A reassessment of the finance-growth and capital accumulation-unemployment nexus.” Economic Modelling, 96: 242-256.

Terzi, Fatih & Bölen, Fulin. 2008. “An Analysis of the Relationship between Housing and Economic Development”, presented at 48th European Congress of the Regional Science Association International, Liverpool, UK.

UN. 2017. Principles and Recommendations for Population and Housing Censuses, Revision 3. UN.

UNESCO Institute for Statistics. 2019. Available from: http://data.un.org/Data.aspx?d=POP&f=tableCode%3a309

Von Simson, Kristine von & Umblijs, Janis. 2020. “Housing conditions and children’s school results: evidence from Norwegian register data” International Journal of Housing Policy, 1-26.

Woo, J. 2020. “Inequality, redistribution, and growth: new evidence on the trade-off between equality and efficiency.” Empirical Economics, 58(6): 2667-2707.

Zergawu, Y.Z., Walle, Y.M. & Giménez-Gómez, J.-M. 2020. “The joint impact of infrastructure and institutions on economic growth.” Journal of Institutional Economics, 16(4): 481-502.