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Human Capital Inequality, Life Expectancy and Economic Growth

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  • Climent, Amparo Castello

    (Universidad Jaume 1 & UCL)

  • Rafael Domenech

Abstract

This paper provides a theoretical model in which inequality affects per capita income when individuals decide to accumulate human capital depending on their life expectancy. The model assumes that life expectancy depends to a large extent on the environment in which individuals grow up, in particular, on the human capital of their parents. After calibrating the life expectancy function according to the international evidence for cross-section data, our results show the existence of multiple steady states depending on the initial distribution of education. In particular, human capital may converge towards different stable steady states. In accordance with the evidence displayed by many developing countries, the low steady state is a poverty trap in which children are raised in poor families, have a low life expectancy and work as non-educated workers all their lives.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 46.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:46

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Web page: http://www.res.org.uk/society/annualconf.asp
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Keywords: life expectancy; iinequality; human capital accumulation;

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References

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Citations

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Cited by:
  1. 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.
  2. 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), revised Sep 2013.
  3. Ana Hidalgo & Amparo Castelló-Climent, 2010. "Quality and Quantity of Education in the Process of Development," 2010 Meeting Papers 238, Society for Economic Dynamics.
  4. Moav, Omer, 2001. "Cheap Children and the Persistence of Poverty," CEPR Discussion Papers 3059, C.E.P.R. Discussion Papers.
  5. David Croix & Alessandro Sommacal, 2009. "A Theory of Medical Effectiveness, Differential Mortality, Income Inequality and Growth for Pre-Industrial England," Mathematical Population Studies, Taylor & Francis Journals, vol. 16(1), pages 2-35.
  6. 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.
  7. 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.
  8. Rangan Gupta & Cobus Vermeulen, 2010. "Private and Public Health Expenditures in an Endogenous Growth Model with Inflation Targeting," Annals of Economics and Finance, Society for AEF, vol. 11(1), pages 139-153, May.
  9. Amparo Castelló-Climent, 2011. "Channels Through Which Human Capital Inequality Influences Economic Growth," Working Papers 1101, International Economics Institute, University of Valencia.
  10. 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.
  11. Yin-Chi Wang, 2011. "Health, Education and Development," 2011 Meeting Papers 1263, Society for Economic Dynamics.
  12. Jesus Crespo Cuaresma & Samir K.C. & Petra Sauer, 2013. "Age-Specific Education Inequality, Education Mobility and Income Growth," WWWforEurope Working Papers series 6, WWWforEurope.
  13. Hung-Ju Chen, 2010. "Life expectancy, fertility, and educational investment," Journal of Population Economics, Springer, vol. 23(1), pages 37-56, January.

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