IDEAS home Printed from https://ideas.repec.org/a/bla/econom/v61y1994i243p355-78.html
   My bibliography  Save this article

Accumulation of Human Capital in LDCs in the Presence of Unemployment

Author

Listed:
  • Upadhyay, Mukti P

Abstract

This paper takes up an aggregative growth framework to study how human and physical capital evolve over time as households allocate their investment between the two assets. In the context of unemployment of educated labor, it develops a general equilibrium model of an economy with two sectors: a composite good sector and a schooling sector where output is subject to increasing returns to scale. A temporary equilibrium for this economy depends on the endowments of physical and human capital as well as on the output elasticity of returns to scale and the price elasticity of education. The dynamic evolution of this economy is explored in terms of the accumulation of the two types of capital. A rise in education subsidy increases the demand for education at the cost of investment in physical capital and could lead to inefficient substitution between skilled and unskilled workers in the long run. Copyright 1994 by The London School of Economics and Political Science.

Suggested Citation

  • Upadhyay, Mukti P, 1994. "Accumulation of Human Capital in LDCs in the Presence of Unemployment," Economica, London School of Economics and Political Science, vol. 61(243), pages 355-378, August.
  • Handle: RePEc:bla:econom:v:61:y:1994:i:243:p:355-78
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0427%28199408%292%3A61%3A243%3C355%3AAOHCIL%3E2.0.CO%3B2-J&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Upadhyay, Mukti P., 1997. "Can public sector employment spur human capital acquisition?," Economics Letters, Elsevier, vol. 56(1), pages 121-127, September.
    2. Asma Hyder, 2007. "Preference for Public Sector Jobs and Wait Unemployment : A Micro Data Analysis," Labor Economics Working Papers 22196, East Asian Bureau of Economic Research.
    3. Stephen M. Miller & Mukti P. Upadhyay, 1997. "The Effects of Trade Orientation and Human Capital on Total Factor Productivity," Working papers 1997-07, University of Connecticut, Department of Economics.
    4. M. Ali Khan, 1993. "On Education as a Commodity," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 541-582.
    5. Bakari, Sayef, 2015. "La question du chômage des jeunes diplômés en Tunisie : Evolution, caractéristiques, limites et perspectives (1990 – 2014)
      [The issue of unemployment of young graduates in Tunisia: Evolution, chara
      ," MPRA Paper 74702, University Library of Munich, Germany.
    6. Mamit Deme & David Franck & Nadeem Naqvi, 2005. "A General Equilibrium Skill Acquisitions Model Of Development For Lesotho," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 15-29, June.
    7. Dearmon, Jacob & Grier, Robin, 2011. "Trust and the accumulation of physical and human capital," European Journal of Political Economy, Elsevier, vol. 27(3), pages 507-519, September.
    8. BOUDARBAT, Brahim, 2006. "Unemployment, Status In Employment And Wages In Morocco," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1).
    9. Miller, Stephen M. & Upadhyay, Mukti P., 2000. "The effects of openness, trade orientation, and human capital on total factor productivity," Journal of Development Economics, Elsevier, vol. 63(2), pages 399-423, December.
    10. Aurora Teixeira & Natércia Fortuna, 2003. "Human Capital, Innovation Capability and Economic Growth," FEP Working Papers 131, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:econom:v:61:y:1994:i:243:p:355-78. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/lsepsuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.