IDEAS home Printed from
   My bibliography  Save this article

Endogenous Human Capital Investment And The Interaction Of Frontier And Adoptive Knowledge On Growth And Wage Inequality


  • Kevin James Bowman


A three-sector, overlapping-generations growth model endogenizes the opportunity cost of human capital formation and the relative skill requirements of invention, innovation, and adoption of general-purpose technologies. As a result, the relative wage of skilled workers is a function of the endogenous ratio of total-to-adoptive knowledge (where the difference in knowledge stocks is frontier knowledge). Comparative statics are examined for the model's seven parameters. Simulations (representing a transition with phases to a more complex level of economic development) are presented for simultaneous exogenous shocks capable of matching (i) observed inverse movements of the relative wage and the detrended relative supply in the USA, (ii) the sharp slowing and recovering US multifactor productivity growth data since the 1970s, and (iii) a reconciliation of data used to support or deny skill-biased technological change as a major force driving up the relative wage since 1980.

Suggested Citation

  • Kevin James Bowman, 2008. "Endogenous Human Capital Investment And The Interaction Of Frontier And Adoptive Knowledge On Growth And Wage Inequality," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 571-592.
  • Handle: RePEc:taf:ecinnt:v:17:y:2008:i:6:p:571-592
    DOI: 10.1080/10438590701552045

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

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

    References listed on IDEAS

    1. Caroline M. Hoxby, 1997. "How the Changing Market Structure of U.S. Higher Education Explains College Tuition," NBER Working Papers 6323, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)


    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:taf:ecinnt:v:17:y:2008:i:6:p:571-592. 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: (Chris Longhurst). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.