In this model of North and South economies, growth is driven by Schumpeterian R&D and by accumulation of two types of human capital, versatile and specialized. The former is school intensive while the latter is on-the-job-training intensive. Growth is endogenous and independent of scale effects....

This article analyzes the effect of free public education on fertility, private educational investments and human capital accumulation at different stages of economic development. The model shows that when fertility is endogenous parental human capital levels are crucial for implications of free...

The paper studies the contribution of human capital on economic growth through its impact on the rate of innovation by formulating an endogenous growth model that combines elements from Romer (1990), Aghion and Howitt (1992), and van Zon and Yetkiner (2003). Using a relatively broad concept of...

This paper presents a theoretical model to show that in sectors where workers invest in firm specific knowledge employment protection legislation can raise employment, productivity and welfare. The model also predicts a U-shaped relation between firing costs and unemployment. Finally, it gives a...

Recent growth theories have utilized the Ben-Porath (1967) mechanism according to which prolonging the period in which individuals may receive returns on their investment spurs investment in human capital and cause growth. An important, though sometime implicit implication of these models is...

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different factors in production, and political conflicts among factor owners on how to divide the outputs. The main capital form in economy evolves from...

Do policies that alter the allocation of human capital across individuals affect the innovation capacity of an economy? To answer this question I extend Romer’s growth model to allow for individual heterogeneity. I find that the value of an invention rises with equality. If skills and talents...

This paper analyzes the mechanisms, other than market size, through which international trade of intermediate goods incorporating state-of-the-art technological knowledge affects accumulation of human capital and wage inequality in the North and South. Under North-South technological diffusion,...

This paper builds a multi-sector, three country (centre and two peripheries), New Economic Geography model, where industrial sectors differ in the degree of scale economies and skill-intensity. The model incorporates, for the first time in this class of models, payments to the unemployed in each...

In this paper we investigate the relationship between the agricultural technological level and R&D expenditures, human capital and openness to international trade using cross country information for a sample of 104 countries and various sub samples over the period 1961-1991. We first model the...