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Human Capital Inequality, Life Expectancy and Economic Growth

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  • Amparo Castello-Climent

    ()
    (International Economics Institute, University of Valencia)

  • Rafael Domenech

    ()
    (International Economics Institute, University of Valencia)

Abstract

This paper presents a model in which inequality affects per capita income when individuals decide to invest in education taking into account their life expectancy, which depends to a large extent on the human capital of their parents. Our results show the existence of multiple steady states depending on the initial distribution of education. The low steady state is a poverty trap in which children raised in poor families have low life expectancy and work as non-educated workers. The empirical evidence suggests that the life expectancy mechanism explains a major part of the relationship between inequality and human capital accumulation.

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File URL: http://iei.uv.es/docs/wp_internos/RePEc/pdf/iei_0604.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by International Economics Institute, University of Valencia in its series Working Papers with number 0604.

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Length: 31 pages
Date of creation: Sep 2006
Date of revision:
Handle: RePEc:iei:wpaper:0604

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Keywords: Life expectancy; human capital; inequality.;

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References

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Citations

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Cited by:
  1. Moav, Omer, 2001. "Cheap Children and the Persistence of Poverty," CEPR Discussion Papers 3059, C.E.P.R. Discussion Papers.
  2. Rangan Gupta & Cobus Vermeulen, 2010. "Private and Public Health Expenditures in an Endogenous Growth Model with Inflation Targeting," Working Papers 201001, University of Pretoria, Department of Economics.
  3. Amparo Castelló-Climent & Ana Hidalgo-Cabrillana, 2011. "The Role of Educational Quality and Quantity in the Process of Economic Development," CEP Discussion Papers dp1087, Centre for Economic Performance, LSE.
  4. 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).
  5. Yin-Chi Wang, 2011. "Health, Education and Development," 2011 Meeting Papers 1263, Society for Economic Dynamics.
  6. Hung-Ju Chen, 2010. "Life expectancy, fertility, and educational investment," Journal of Population Economics, Springer, vol. 23(1), pages 37-56, January.
  7. Amparo Castelló-Climent, 2011. "Channels Through Which Human Capital Inequality Influences Economic Growth," Working Papers 1101, International Economics Institute, University of Valencia.
  8. Amparo Castelló-Climent & Ana Hidalgo-Cabrillana, 2010. "Quality and quantity of education in the process of development," Economics Working Papers we1020, Universidad Carlos III, Departamento de Economía.
  9. Jesus Crespo Cuaresma & Samir K.C. & Petra Sauer, 2013. "Age-Specific Education Inequality, Education Mobility and Income Growth," WWWforEurope Working Papers series 6, WWWforEurope.
  10. 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.
  11. 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.
  12. 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.
  13. DE LA CROIX, David & SOMMACAL, Alessandro, 2006. "A theory of medicine effectiveness, differential mortality, income inequality and growth for pre-industrial England," CORE Discussion Papers 2006045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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