Physical And Human Capital Accumulation And The Evolution Of Income And Inequality
We study how financial and educational institutions affect the evolution of income and income inequality in an overlapping generations model with heterogenous agents. While the literature mostly focuses on either physical or human capital, we make an attempt to study the joint evolution of these variables. In our model, we find that better educational institutions increase income of the individuals and are associated with lower income inequality. Better financial institutions also foster economic growth, but are associated with higher income inequality. Our model also demonstrates that focusing on aggregate measures of financial and educational institutions provides misleading results if one neglects the possibility of unequal access to these institutions.
Volume (Year): 38 (2013)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.jed.or.kr/|
More information through EDIRC
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.:
- Oded Galor & Omer Moav, 2004.
"From Physical to Human Capital Accumulation: Inequality and the Process of Development,"
Review of Economic Studies,
Oxford University Press, vol. 71(4), pages 1001-1026.
- Oded Galor & Omer Moav, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," Working Papers 99-27, Brown University, Department of Economics.
- Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," GE, Growth, Math methods 0410005, EconWPA.
- Galor, Oded & Moav, Omer, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," CEPR Discussion Papers 2307, C.E.P.R. Discussion Papers.
- Loesse Jacques Esso, 2010. "Re-Examining The Finance-Growth Nexus: Structural Break, Threshold Cointegration And Causality Evidence From The Ecowas," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(3), pages 57-79, September.
- Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
- AZARIADIS, Costas & de la CROIX, David, 2002. "Growth or equality ? Losers and gainers from financial reform," CORE Discussion Papers 2002058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Costas AZARIADIS & David DE LA CROIX, 2002. "Growth or equality ? Losers and gainers from financial reform," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002036, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Mejia, Daniel & St-Pierre, Marc, 2008. "Unequal opportunities and human capital formation," Journal of Development Economics, Elsevier, vol. 86(2), pages 395-413, June.
- Marc St-Pierre & Daniel Mejia, 2004. "Unequal opportunities and human capital formation," Econometric Society 2004 Latin American Meetings 188, Econometric Society.
- Daniel Mejía & Marc St-Pierre, 2006. "Unequal Opportunities and Human Capital Formation," Borradores de Economia 415, Banco de la Republica de Colombia.
- Daniel MejÃa & Marc St-Pierre, 2005. "Unequal Opportunities and Human Capital Formation," CESifo Working Paper Series 1383, CESifo Group Munich.
- Daniel Mejía & Marc St-Pierre, 2006. "Unequal Opportunities and Human Capital Formation," BORRADORES DE ECONOMIA 003737, BANCO DE LA REPÚBLICA.
- Kunieda, Takuma, 2008. "Financial Development, Capital Flow, and Income Differences between Countries," MPRA Paper 11342, University Library of Munich, Germany.
- Cornelissen Thomas & Jirjahn Uwe & Tsertsvadze Georgi, 2008. "Parental Background and Earnings: German Evidence on Direct and Indirect Relationships," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 554-572, October.
- Claessens, Stijn & Perotti, Enrico, 2007. "Finance and inequality: Channels and evidence," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 748-773, December. Full references (including those not matched with items on IDEAS)