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The paper examines the effect of heterogeneity in individual human capital formation on cross-country income inequality. It considers a two-country model of overlapping generation heterogeneous economies with the following features: (1) individuals are heterogeneous with respect to inborn...
Persistent link: https://www.econbiz.de/10014220552
We review studies of the impact of credit constraints on the accumulation of human capital. Evidence suggests that credit constraints have recently become important for schooling and other aspects of households' behavior. We highlight the importance of early childhood investments, as their...
Persistent link: https://www.econbiz.de/10014166134
The paper studies the effects of cross-country differences in the production process of human capital on income distribution and growth. Our overlapping generations economy has the following features: (1)consumers are heterogenous with respect to parental education and wealth;...
Persistent link: https://www.econbiz.de/10014118238
This paper investigates the determinants of inequality in human capital with an emphasis on the role of the credit constraints. We develop and estimate a model in which individuals face uninsured human capital risks and invest in education, acquire work experience, accumulate assets and smooth...
Persistent link: https://www.econbiz.de/10012966600