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Human Capital and Cross-Country Comparison of Inequality

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  • Jean-Marie Viaene

    ()
    (Faculty of Economics, Erasmus University Rotterdam)

  • Itzhak Zilcha

    ()
    (The Eitan Berglas School of Economics, Tel Aviv University)

Abstract

The paper studies the effects of cross-country differences in the productionprocess of human capital on income distribution and growth. Our overlapping gen-erations economy has the following features: (1) consumers are heterogenous withrespect to parental human capital and wealth; (2) intergenerational transfers takeplace via parental education and, public investments in education financed by taxes(possibly, with a level determined by majority voting); (3) due to investment inhuman capital, which is a factor of production, we have endogenous growth. Weexplore several types of cross-country variations in the production of human capi-tal, some attributed to 'home-education' and others related to 'public-education',and their effect upon intragenerational income inequality and growth along theequilibrium path. We also indicate how the level of public education affects humancapital formation and the conditions leading to poverty traps.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-036/2.

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Date of creation: 10 Apr 2002
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Handle: RePEc:dgr:uvatin:20020036

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Web page: http://www.tinbergen.nl

Related research

Keywords: Human Capita!; Income Inequality; Endogenous Growth;

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Cited by:
  1. Mehari Mekonnen Akalu, 2002. "Measuring and Ranking Value Drivers," Tinbergen Institute Discussion Papers 02-043/2, Tinbergen Institute.
  2. Leonid Azarnert, 2006. "Free Education: For Whom, Where and When?," DEGIT Conference Papers c011_024, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Haris Munandar, 2008. "Heterogeneous Agents, Human Capital Formation and International Income Inequality," Tinbergen Institute Discussion Papers 08-015/2, Tinbergen Institute.

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