From rubble to recovery: capital, labor, and gender in the “economic miracles” of Germany and Japan

Kenzhegaliyeva, Zhaniya (2025): From rubble to recovery: capital, labor, and gender in the “economic miracles” of Germany and Japan.

Abstract

This paper analyzes the postwar economic growth of Germany and Japan using the Solow Growth Model and its extensions. By examining historical data on savings, investment, capital accumulation, and labor force dynamics, the study identifies the mechanisms behind rapid convergence toward steady-state output. Extending the model to incorporate human capital and labor heterogeneity, it highlights the role of mass education and gender inclusion in sustaining growth. Differences in female labor participation across East and West Germany and Japan are analyzed using the feminization U-hypothesis. The paper also considers political background and cultural factors shaping labor and capital outcomes. It concludes with policy recommendations for modern developing economies, drawn from the postwar experiences of Germany and Japan, emphasizing inclusive labor use, human capital investment, institutional credibility, and capital deepening.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic miracle; Solow Growth Model; human capital; gender and development; catch-up growth; labor force participation
• Subjects: N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy; N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N34 - Europe: 1913-; N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N35 - Asia including Middle East; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries

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