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An Economic Growth Model with Education and Industriousness

Author

Listed:
  • Hobara , Nobuhiro

    (Graduate School of Tokyo University of Social Welfare, Japan)

  • Kuwahara, Shiro

    (University of Hyogo, Japan)

Abstract

This study investigates the relationships between long-run growth, education, and “industriousness” using an extended Uzawa-Lucas model with labor-leisure choice, where “industriousness” is captured by the propensity for labor-leisure choice. The extension describes shifts from economic stagnation to long-run economic growth through the structural change of “industriousness,” a growth path within the de Vries’ “industrious revolution.” A domain that generates multiple steady states exists in the middle range of the industriousness parameter, implying the existence of middle-income traps. Although the range is narrow, it can be broadened by, for example, higher population growth.

Suggested Citation

  • Hobara , Nobuhiro & Kuwahara, Shiro, 2023. "An Economic Growth Model with Education and Industriousness," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(1), pages 35-57, March.
    • Handle: RePEc:ris:jecdev:0050
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Industriousness; Economic Growth; Uzawa-Lucas Model; Labor-Leisure Choice; Multiple Steady States; Middle-Income Trap;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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