Inequality and Growth: The Dual Role of Human Capital in Development
By T. Eicher, Cecilia García-Peñalosa. Social Science Research Network, 2000
139 citations recorded by the source corpus.
To examine how human capital accumulation influences both economic growth and income inequality, we carefully endogenize the demand and supply of skills. We explicitly introduce the costs and externalities in education, and examine how both relate to learning-by-doing and R&D intensity. In addition, we endogenize the determinants of the skill-bias of labor demand: the complementarity between technology and skilled and unskilled labor. Our results identify parameters that are central to the evolution of inequality during the development process. We characterise development thresholds when countries switch endogenously from pure learning to directed R&D, and we show that technical change can generate multiple steady states that are consistent with the cross-country data on inequality and skill-premia.
Subfields: Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/ed89ba49271d0b16dee53b81b58e21ae66fb664e
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Sociology and Political Science
Citations in the corpus
- Cheap Children and the Persistence of Poverty (2001, unknown): “Galor and Tsiddon (1997), Acemoglu (1998), Caselli (1999), Galor and Moav (2000), Eicher and Gracia-Penalosa (2001), Gould et al. (2001), Aghion et al. (2002), Gould (2002), Violante (2002) and Rubinstein and Tsiddon (2004), among others, have recently contributed to the theoretical study of the…”
- Human Capital Inequality, Life Expectancy and Economic Growth (2008, unknown): “5 Other models with heterogeneous agents that generate multiple steady states, without assuming non-convexities in the production process, are the recent papers of Moav (2004) or Eicher and García-Peñalosa (2001).”
- Endogenous Strength of Intellectual Property Rights (2008, background): “Moreover, the innovation/imitation interaction between countries can generate interesting dynamics (see Horowitz and Lai, 1996) and even give rise to setups in which a country endogenously switches from imitation to directed R&D (see Eicher and García-Peñalosa, 2001).”