Many empirical works suggest that education has a positive effect on earnings not only because it raises human capital but also because it functions as a signal when employers have incomplete information on employees' skills.The signaling role could have important consequences on the dynamics of...

Empirical evidence suggests that ethnic divisions in a society leads to negative outcomes in civil conflict and economic development, among others. It is often argued that the lack of shared social identity, that is, the dominance of subnational (particularly, ethnic) identities over national...

Mechanization (or automation) - the replacement by machines of humans (and animals) engaged in production tasks- has proceeded continuously since the Industrial Revolution and seems to have accelerated recently due to the rapid advancement of information technology. This paper examines...

Many developing countries are populated by multiple ethnic groups who use their own language in daily life and in local business, but have to use a common language in national business and in communications with other groups. In these countries, how much weights should be placed on teaching a...

This paper develops a dynamic dual-economy model and examines how the long-run outcome of an economy depends on the initial distribution of wealth and sectoral productivity.It is shown that, for fast transformation into a developed economy, the initial distribution must be such that extreme...

Mechanization− the replacement by machines of humans engaged in production tasks− is a continuing process since the Industrial Revolution. As a result, humans have shifted to tasks machines cannot perform efficiently. The general trend until about the 1960s is the shift from manual tasks to...

In the post-WWII era, most developing economies had decent economic growth, but, with current growth trends, the great majority of them are unlikely to transform into developed economies in near future. In these economies, the dual economic structure, the coexistence of the modern/formal sector...

Economic development is associated with the shift of production from the traditional sector (e.g. traditional agriculture and the urban informal sector) to the modern sector (e.g. modern manufacturing and commercial agriculture). Human capital accumulation, particularly, education and job...

Poor economic performance of minority groups and large economic disparity between these groupsand the majority group are major concerns in most countries. In many of these countries, the mother tongue of the latter group is the common language in national business and in...

There are two phenomena widely observed when an economy departs from an underdeveloped state and starts rapid economic growth. One is the shift of production, employment, and consumption from the traditional sector to the modern sector, and the other is a large increase in educational levels of...