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Human Capital Inequality, Life Expectancy And Economic Growth

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  • Amparo Castelló-Climent
  • Rafael Doménech

Abstract

This article presents a model in which inequality affects per capita income when individuals decide to invest in education taking into account their life expectancy, which depends to a large extent on the human capital of their parents. Our results show the existence of multiple steady states depending on the initial distribution of education. The low steady state is a poverty trap in which children raised in poor families have low life expectancy and work as non-educated workers. The empirical evidence suggests that the life expectancy mechanism explains a major part of the relationship between inequality and human capital accumulation. Copyright � 2008 The Author(s).

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0297.2008.02136.x
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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 118 (2008)
Issue (Month): 528 (04)
Pages: 653-677

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Handle: RePEc:ecj:econjl:v:118:y:2008:i:528:p:653-677

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  1. Tamura, Robert, 2006. "Human capital and economic development," Journal of Development Economics, Elsevier, vol. 79(1), pages 26-72, February.
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Citations

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Cited by:
  1. DE LA CROIX, David & SOMMACAL, Alessandro, . "A theory of medical effectiveness, differential mortality, income inequality and growth for pre-industrial England," CORE Discussion Papers RP -2103, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Yin-Chi Wang, 2011. "Health, Education and Development," 2011 Meeting Papers 1263, Society for Economic Dynamics.
  3. Amparo Castelló-Climent, 2011. "Channels Through Which Human Capital Inequality Influences Economic Growth," Working Papers 1101, International Economics Institute, University of Valencia.
  4. Rangan Gupta & Cobus Vermeulen, 2010. "Private and Public Health Expenditures in an Endogenous Growth Model with Inflation Targeting," Working Papers 201001, University of Pretoria, Department of Economics.
  5. Moav, Omer, 2001. "Cheap Children and the Persistence of Poverty," CEPR Discussion Papers 3059, C.E.P.R. Discussion Papers.
  6. Castelló-Climent, Amparo & Hidalgo-Cabrillana, Ana, 2012. "The role of educational quality and quantity in the process of economic development," Economics of Education Review, Elsevier, vol. 31(4), pages 391-409.
  7. Tetsuo Ono, 2013. "Public Education and Social Security: A Political Economy Approach," Discussion Papers in Economics and Business 13-06-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  8. Papageorgiou, Chris & Razak, Nor Azam Abdul, 2009. "Inequality, Human Capital and Development: Making the Theory Face the Facts," MPRA Paper 18973, University Library of Munich, Germany.
  9. Jeroen Klomp & Jakob Haan, 2013. "Political Regime and Human Capital: A Cross-Country Analysis," Social Indicators Research, Springer, vol. 111(1), pages 45-73, March.
  10. Hung-Ju Chen, 2010. "Life expectancy, fertility, and educational investment," Journal of Population Economics, Springer, vol. 23(1), pages 37-56, January.
  11. Jesus Crespo Cuaresma & Samir K.C. & Petra Sauer, 2013. "Age-Specific Education Inequality, Education Mobility and Income Growth," WWWforEurope Working Papers series 6, WWWforEurope.
  12. David, DE LA CROIX & Alessandro, SOMMACAL, 2006. "A Theory of Medecine Effectiveness, Differential Mortality, Income Inequality and Growth for Pre-Industrial England," Discussion Papers (ECON - Département des Sciences Economiques) 2006025, Université catholique de Louvain, Département des Sciences Economiques.

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