An analysis of the demand for skill in a growing economy
AbstractWe construct a trade theoretic model of skill formation with skill as a produced intermediate input. Capital is required for production as well as for education which transforms unskilled labor into skilled. We use this model to reflect analytically on India's rising requirement of skilled manpower. We show that even if growth of capital and supply of skilled manpower match, relative stagnation of unskilled manufacturing sector will magnify the gap between growth in demand and supply of skill. This may happen, for example, if there is a vast pool of workforce who may not have even the basic education to qualify as "unskilled" and excessive capital flows into the skilled sector. Thus a country with lack of education at a very basic level will be forced to import skilled manpower from the rest of the world.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 28 (2011)
Issue (Month): 4 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411
Skill formation Growth Capital allocation;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Barro & N. Gregory Mankiw & Xavier Sala-i-Martin, 1994.
"Capital mobility in Neoclassical models of growth,"
Economics Working Papers
82, Department of Economics and Business, Universitat Pompeu Fabra.
- Barro, Robert J & Mankiw, N Gregory & Sala-i-Martin, Xavier, 1995. "Capital Mobility in Neoclassical Models of Growth," American Economic Review, American Economic Association, American Economic Association, vol. 85(1), pages 103-15, March.
- Barro, R.J. & Mankiw, N.G. & Sala-i-Martin, X., 1992. "Capital Mobility in Neoclassical Models of Growth," Papers, Yale - Economic Growth Center 655, Yale - Economic Growth Center.
- Barro, R. & Mankiw, G., 1992. "Capital Mobility in Neoclassical Models of Growth," Harvard Institute of Economic Research Working Papers 1615, Harvard - Institute of Economic Research.
- Barro, Robert J. & Mankiw, N Gregory & Sala-i-Martin, Xavier, 1994. "Capital Mobility in Neoclassical Models of Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1019, C.E.P.R. Discussion Papers.
- Robert J. Barro & N. Gregory Mankiw & Xavier Sala-i-Martin, 1992. "Capital Mobility in Neoclassical Models of Growth," NBER Working Papers 4206, National Bureau of Economic Research, Inc.
- Kar, Saibal & Marjit, Sugata, 2009. "Urban informal sector and poverty," International Review of Economics & Finance, Elsevier, Elsevier, vol. 18(4), pages 631-642, October.
- Galor, Oded & Zeira, Joseph, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies, Wiley Blackwell,
Wiley Blackwell, vol. 60(1), pages 35-52, January.
- Amador, JoÃ£o & Cabral, SÃ³nia, 2009.
"Vertical specialization across the world: A relative measure,"
The North American Journal of Economics and Finance, Elsevier,
Elsevier, vol. 20(3), pages 267-280, December.
- JoÃ£o Amador & SÃ³nia Cabral, 2008. "Vertical Specialization Across the World: A Relative Measure," Working Papers, Banco de Portugal, Economics and Research Department w200810, Banco de Portugal, Economics and Research Department.
- Amador, João & Cabral, Sónia, 2008. "Vertical specialization across the world: a relative measure," MPRA Paper 9618, University Library of Munich, Germany.
- Gilbert, John & Oladi, Reza, 2009. "Capital specificity, imperfect labor mobility and growth in developing economies," International Review of Economics & Finance, Elsevier, Elsevier, vol. 18(1), pages 113-122, January.
- Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 91(6), pages 957-78, December.
- Marjit, Sugata & Beladi, Hamid, 1999. "Complementarity between Import Competition and Import Promotion," Journal of Economic Theory, Elsevier, Elsevier, vol. 86(2), pages 280-285, June.
- Abhijit V. Banerjee & Andrew F. Newman, 1990.
"Occupational Choice and the Process of Development,"
Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science
911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(2), pages 274-98, April.
- Mehtabul Azam, 2007.
"India’s Increasing Skill Premium: Role of Demand and Supply,"
Departmental Working Papers
0710, Southern Methodist University, Department of Economics.
- Azam Mehtabul, 2010. "India's Increasing Skill Premium: Role of Demand and Supply," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-28, October.
- Azam, Mehtabul, 2009. "India's Increasing Skill Premium: Role of Demand and Supply," IZA Discussion Papers 3968, Institute for the Study of Labor (IZA).
- Gu Wei & Shigemi Yabuuchi, 2006. "Imperfect Labor Mobility and Unemployment in a Dual Economy," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 698-708, 09.
- Jones, R.W. & Marjit, S., 1992. "International Trade and Endogenous Production Structures," RCER Working Papers 312, University of Rochester - Center for Economic Research (RCER).
- Reza Oladi, 2005. "Stable Tariffs and Retaliations," Review of International Economics, Wiley Blackwell, vol. 13(2), pages 205-215, 05.
- Toru Kikuchi & Ngo Van Long, 2010.
"A Simple Model of Service Offshoring with Time Zone Differences,"
CESifo Working Paper Series
2990, CESifo Group Munich.
- Kikuchi, Toru & Long, Ngo Van, 2010. "A simple model of service offshoring with time zone differences," The North American Journal of Economics and Finance, Elsevier, Elsevier, vol. 21(3), pages 217-227, December.
- Toru Kikuchi & Ngo Van Long, 2009. "A Simple Model of Service Offshoring with Time Zone Differences," Discussion Papers 0916, Graduate School of Economics, Kobe University.
- Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, Elsevier, vol. 88(1), pages 141-145, July.
- Reza Oladi, 2004. "Strategic quotas on foreign investment and migration," Economic Theory, Springer, Springer, vol. 24(2), pages 289-306, August.
- Saibal Kar & Basudeb Guha-Khasnobis, 2006. "Economic Reform, Skill Formation and Foreign Capital," The World Economy, Wiley Blackwell, vol. 29(1), pages 79-94, 01.
- Hamid Beladi & Avik Chakrabarti & Sugata Marjit, 2010. "Skilled-Unskilled Wage Inequality And Urban Unemployment," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 997-1007, October.
- Chakrabarti, Avik, 2004. "Asymmetric adjustment costs in simple general equilibrium models," European Economic Review, Elsevier, Elsevier, vol. 48(1), pages 63-73, February.
- Ronald W. Jones & Sugata Marjit, 2001. "The Role of International Fragmentation in the Development Process," American Economic Review, American Economic Association, American Economic Association, vol. 91(2), pages 363-366, May.
- Kar, Saibal & Beladi, Hamid, 2004. "Skill formation and international migration: welfare perspective of developing countries," Japan and the World Economy, Elsevier, Elsevier, vol. 16(1), pages 35-54, January.
- Mandal, Biswajit & Marjit, Sugata & Nakanishi, Noritsugu, 2013. "Time Zones, Factor Prices and Inflow of Educational Capital: Changing Sectoral Composition," MPRA Paper 50883, University Library of Munich, Germany.
- Mandal, Biswajit & Mandal, Arindam, 2014. "A Note on How and Why Growth and Unemployment Go Hand in Hand in Developing Economies," MPRA Paper 56523, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.