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Unequal opportunities and human capital formation

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  • Marc St-Pierre
  • Daniel Mejia

Abstract

This paper develops a tractable, heterogeneous agents general equilibrium model where agents face different costs of access to the educational system. The paper explores the relation between inequality of opportunities (in the form of differential costs of access to the educational process) and efficiency (the levels of human capital and output). More precisely, the results from the simulation of the model suggest that a higher level of inequality of opportunities is associated with a lower level of average human capital, lower output per worker and higher income (wage) inequality. In other words, the model (based on standard assumptions) does not predict a trade-off between efficiency and equal opportunity in human capital formation

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 188.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:latm04:188

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Keywords: Human Capital; Inequality; Equity-Efficiency Tradeoff;

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References

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Citations

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Cited by:
  1. Helmuth Cremer & Philippe De Donder & Pierre Pestieau, 2010. "Education and Social Mobility," CESifo Working Paper Series 2951, CESifo Group Munich.
  2. Zakharenko, Roman, 2012. "Human capital acquisition and international migration in a model of educational market," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 808-816.
  3. Carolina Arteaga Cabrales, . "Human Capital Externalities and Growth," Borradores de Economia 631, Banco de la Republica de Colombia.
  4. Oded Galor, 2011. "Inequality, Human Capital Formation and the Process of Development," Working Papers 2011-7, Brown University, Department of Economics.
  5. Andrés Ham, 2010. "The Effect of Conditional Cash Transfers on Educational Opportunities - Experimental Evidence from Latin America," CEDLAS, Working Papers 0109, CEDLAS, Universidad Nacional de La Plata.
  6. Gustavo A. Marrero & Juan G. Rodríguez, 2010. "Inequality of opportunity and growth," Working Papers 154, ECINEQ, Society for the Study of Economic Inequality.
  7. Kirdar, Murat G. & Dayioglu-Tayfur, Meltem & Koc, Ismet, 2014. "Does Longer Compulsory Education Equalize Schooling by Gender and Rural/Urban Residence?," IZA Discussion Papers 7939, Institute for the Study of Labor (IZA).
  8. Oded Galor, 2009. "Inequality and Economic Development: An Overview," Working Papers 2009-3, Brown University, Department of Economics.
  9. Guido Baldi, 2013. "Physical And Human Capital Accumulation And The Evolution Of Income And Inequality," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(3), pages 57-83, September.
  10. Daniel Suryadarma & Wenefrida Widyanti & Asep Suryahadi & Sudarno Sumarto, 2006. "From Access to Income : Regional and Ethnic Inequality in Indonesia," Development Economics Working Papers 22547, East Asian Bureau of Economic Research.

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