This paper examines how the accumulation of human capital determines both a country's growth rate and income inequality. In contrast to previous work, we do not rely on credit market imperfections or political economy arguments. The insight of this model is that inequality is determined by the...

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.1 In...

This research suggests that favorable geographical conditions, that were inherently associated with inequality in the distribution of land ownership, adversely affected the implementation of human capital promoting institutions (e.g., public schooling and child labor regulations), and thus the...