Occupational Choice and Dynamic Indeterminacy
AbstractThis paper construct a two-sector model of two-period lived overlapping generations with endogenous occupational choice where ability-heterogeneous agents choose whether to become educated when young and henceforth to become skilled when old. We show that endogenous occupational choice in this two-sector framework can result in dynamic indeterminacy without complicate preferences/technologies and without requiring the consumption-good production to be more capital-intensive.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17063.
Date of creation: Nov 2003
Date of revision:
occupational choice; overlapping generations; indeterminacy of equilibrium;
Other versions of this item:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- D90 - Microeconomics - - Intertemporal Choice - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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