The purpose of this paper is to demonstrate that inherited humain capital is a powerful vector of inequality formation and persistence, irrespective of its links with financial wealth endowment. This paper argues that the agents who inherit a low level of human capital bear a greater utility...

We model a successive-generation economy in which parents, motivated by family altruism, decide to finance or not their offspring's human capital accumulation on the basis of their altruistic motive, their own income and the equilibrium ratio between skilled labor and unskilled labor wages. The...