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Inequality and Growth: The Dual Role of Human Capital in Development

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  • Theo Eicher

    (University of Washington)

  • Cecilia Garcia-Penalosa

    (GREQAM)

Abstract

This paper examines how the accumulation of human capital determines both a country's growth rate and income inequality . In contrast to previous work, we do not rely on credit market imperfectionf or political economy arguments. The insight of this model is that inequality is determined by the relative strength of the forces increasing the supply of skills -education- and those increasing the demand for skills -technical change-.

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 1920.

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Date of creation: 01 Aug 2000
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Handle: RePEc:ecm:wc2000:1920

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