The Accumulation of Human Capital and Income Inequality in a Two-Sector Economy
A two-sector endogenous growth model linking human capital accumulation and income inequality is developed. Productivity increases in the final output sector have no effect on growth or inequality. Productivity increases in the human capital sector raise the growth rate, but their effect on income inequality depends on sectoral factor intensities. Income inequality and welfare inequality are driven by different factors and are likely to respond in opposite ways to productivity enhancement in the human capital sector. Finally, the gradual introduction of a productivity increase generates dynamics in both human capital inequality and income inequality, leading to permanent path-dependent effects.
Year of publication: |
2011
|
---|---|
Authors: | Turnovsky, Stephen J. |
Published in: |
Journal of Human Capital. - University of Chicago Press. - Vol. 5.2011, 4, p. 418-418
|
Publisher: |
University of Chicago Press |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Fisher, Walter H., (2011)
-
Foreign Aid and Real Exchange Rate Adjustments in a Financially Constrained Dependent Economy
Turnovsky, Stephen J., (2008)
-
Fisher, Walter H., (1997)
- More ...