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Social learning in Dualistic Societies: Segregation, Growth and Distribution

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Author Info
v. Kalckreuth, Ulf (Institut für Volkswirtschaft und Statistik (IVS))

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Abstract

Using a simple model of social learning, we endogenize growth and distribution in a dualistic developing society. For given parameters of the learning technology, a trade-off between growth and equity results. On the other hand, more intensive social interaction between agents will raise the growth rate and lower the income the income differential at the same time. The economic consequences of lacking social intergration are sluggish growth and high inequality.

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Paper provided by Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim in its series IVS discussion paper series with number 571.

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Handle: RePEc:mea:ivswpa:571

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Find related papers by JEL classification:
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  4. Ellison, Glenn & Fudenberg, Drew, 1993. "Rules of Thumb for Social Learning," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 612-43, August. [Downloadable!] (restricted)
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  12. Ranis, Gustav, 1988. "Analytics of development: Dualism," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 4, pages 73-92 Elsevier. [Downloadable!] (restricted)
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