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The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective

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  • Isaac Ehrlich
  • Jinyoung Kim

Abstract

Using an endogenous‐growth, overlapping‐generations framework in which human capital is the engine of growth, we trace the dynamic evolution of income and fertility distributions and their interdependencies over three endogenous phases of economic development. In our model, heterogeneous families determine fertility and children’s human capital, and generations are linked via parental altruism and social interactions. We derive and test discriminating propositions concerning the dynamic behavior of inequalities in fertility, educational attainments, and three endogenous income inequality measures—family‐income inequality, income‐group inequality, and the Gini coefficient. In this context, we also reexamine the “Kuznets hypothesis” concerning the relation between income growth and inequality.

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Article provided by University of Chicago Press in its journal Journal of Human Capital.

Volume (Year): 1 (2007)
Issue (Month): 1 ()
Pages: 137-174

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Handle: RePEc:ucp:jhucap:v:1:i:1:y:2007:p:137-174

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Cited by:
  1. Isaac Ehrlich, 2009. "The Mystery of Human Capital as Engine of Growth, or Why the US Became the Economic Superpower in the 20th Century," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(56), pages 41-93, October -.
  2. Christian Morrison & Fabrice Murtin, 2009. "The century of education," LSE Research Online Documents on Economics 51583, London School of Economics and Political Science, LSE Library.
  3. Christian Morrisson & Fabrice Murtin, 2009. "The Century of Education," CEE Discussion Papers 0109, Centre for the Economics of Education, LSE.
  4. G. C. Lim & Paul D. McNelis, 2014. "Income Inequality, Trade and Financial Openness," Melbourne Institute Working Paper Series wp2014n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  5. repec:hal:wpaper:halshs-00586751 is not listed on IDEAS

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