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On some undesirable consequences of education and growth

Author

Listed:
  • Cahuc, Pierre
  • Postel-Vinay, Fabien

Abstract

This paper exposes a simple endogenous growth model with human capital accumulation in which competition in the educational system can lead to fast output growth with a simultaneous decline in welfare along a balanced growth path. This illustrates the idea that satisfaction is not straightforwardly related to economic prosperity.

Suggested Citation

  • Cahuc, Pierre & Postel-Vinay, Fabien, 1999. "On some undesirable consequences of education and growth," CEPREMAP Working Papers (Couverture Orange) 9915, CEPREMAP.
  • Handle: RePEc:cpm:cepmap:9915
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    File URL: http://www.cepremap.fr/depot/couv_orange/co9915.pdf
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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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