This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Wealth Distribution, Investment in Human Capital and Occupational Choice When Capital Markets Are Imperfect

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Riccarda Longaretti () (Department of Economics, University of Milan-Bicocca)
Abstract

In order to study the long-run effects of agents’heterogeneity we consider overlapping generations of individuals who differ from one another in wealth and inefficiency level. When young, agents choose whether to invest or not in human capital. Since the net return of human capital investment is positive, agents who can afford such an investment, do invest. In thesecond period of life, agents make an occupational choice. They choose to be workers or entrepreneurs. There exists a critical level of in efficiency be low which becoming entrepreneur is profitable. The wealth distribution and the occupational structure of agents changes overtime, the former being the cause and the effect of thelatter. Thelong run wealth distribution is stationary and can be either ergodic ornot, with long-run occupational mobility or not. We show how the economy’s structural parameters and the types of intergenerational transmission of skills affect the dynamic patterns and thelong-run equilibria.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper38.pdf
File Format: application/pdf
File Function: First version, 2001
Download Restriction: no

Publisher Info
Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 38.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 35 pages
Date of creation: Nov 2001
Date of revision: Nov 2001
Handle: RePEc:mib:wpaper:38

Contact details of provider:
Postal: Edificio U6 (III Piano) - Piazza dell'Ateneo Nuovo, 1 - 20126 Milano
Phone: 02/6448-6581/89
Fax: 02/6448-6585
Email:
Web page: http://dipeco.economia.unimib.it
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Roberto Reale).

Related research
Keywords:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Bertola, Giuseppe, 1993. "Factor Shares and Savings in Endogenous Growth," American Economic Review, American Economic Association, vol. 83(5), pages 1184-98, December. [Downloadable!] (restricted)
    Other versions:
  2. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October. [Downloadable!] (restricted)
  3. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December. [Downloadable!] (restricted)
    Other versions:
  4. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Blackwell Publishing, vol. 60(1), pages 35-52, January. [Downloadable!] (restricted)
  5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October. [Downloadable!] (restricted)
  6. Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Blackwell Publishing, vol. 38(114), pages 175-208, April. [Downloadable!] (restricted)
  7. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June. [Downloadable!] (restricted)
  8. Ann L. Owen & David N. Weil, 1997. "Intergenerational Earnings Mobility, Inequality, and Growth," NBER Working Papers 6070, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December. [Downloadable!] (restricted)
  10. Perotti, Roberto, 1994. "Income distribution and investment," European Economic Review, Elsevier, vol. 38(3-4), pages 827-835, April. [Downloadable!] (restricted)
  11. Sala-I-Martin, X., 1992. "Public Welfare and Growth," Papers 666, Yale - Economic Growth Center.
  12. Guido COZZI, 1998. "Distribuzione e Crescita. Una rassegna della letteratura recente," Rivista Italiana degli Economisti, SIE - Societa' Italiana degli Economisti (I), vol. 1(5), pages 105-150, April. [Downloadable!] (restricted)
  13. Clarke, George R. G., 1992. "More evidence on income distribution and growth," Policy Research Working Paper Series 1064, The World Bank. [Downloadable!]
    Other versions:
  14. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  15. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  16. Grossman, Herschel I., 1995. "Robin hood and the redistribution of property income," European Journal of Political Economy, Elsevier, vol. 11(3), pages 399-410, September. [Downloadable!] (restricted)
  17. Checchi, Daniele & Ichino, Andrea & Rustichini, Aldo, 1999. "More equal but less mobile?: Education financing and intergenerational mobility in Italy and in the US," Journal of Public Economics, Elsevier, vol. 74(3), pages 351-393, December. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.

This page was last updated on 2010-1-2.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.