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Distribution of Human Capital and Economic Growth

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  • Bandyopadhyay, Debasis
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    This paper provides an empirically tractable model of economic growth where the distribution of human capital is central to understanding the key issues. Long run growth is possible only if the distribution of human capital belongs to a known class such that investment in education, the model's engine of growth, exceeds inter-generational depreciation of human capital. The model contributes to understanding of the puzzle of growth disparities among countries by exhibiting multiple steady states under alternative paradigms of growth. It provides a purely neoclassical model to explain why a lower income inequality may correspond to a higher rate of growth.

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    File URL: http://hdl.handle.net/2292/157
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    Paper provided by Department of Economics, The University of Auckland in its series Working Papers with number 157.

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    Date of creation: 1997
    Handle: RePEc:auc:wpaper:157
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