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The Evolution Of Income And Fertility Inequalities Over The Course Of Economic Development: A Human Capital Perspective

Author Info

  • Isaac Ehrlich

    (State University of New York at Buffalo and NBER)

  • Jinyoung Kim

    ()

    (Department of Economics, Korea University)

Abstract

Using an endogenous-growth, overlapping-generations framework where human capital is the engine of growth, we derive propositions concerning the evolution of income and fertility distributions and their interdependencies over three phases of economic development. In our model, heterogeneous families determine fertility and children’s human capital, and generations are linked through intra-family and inter-family interactions. Through simulations and regression analyses we test key implications concerning the dynamic behavior of inequalities in fertility, educational attainments, and three income inequality measures -- family-income inequality, income-group inequality, and the Gini coefficient. In this context, we also reexamine the “Kuznets hypothesis?concerning the relation between income growth and inequality.

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File URL: http://econ.korea.ac.kr/~ri/WorkingPapers/w0704.pdf
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Paper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 0704.

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Date of creation: 2007
Date of revision:
Handle: RePEc:iek:wpaper:0704
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Keywords: income inequality; human capital; fertility; schooling; family; endogenous growth;

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Find related papers by JEL classification:
  • D1 - Microeconomics - - Household Behavior
  • D3 - Microeconomics - - Distribution
  • J1 - Labor and Demographic Economics - - Demographic Economics
  • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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Cited by:

  1. Christian Morrisson & Fabrice Murtin, 2009. "The Century of Education," CEP Discussion Papers dp0934, Centre for Economic Performance, LSE.
  2. G. C. Lim & Paul D. McNelis, 2014. "Income Inequality, Trade and Financial Openness," Melbourne Institute Working Paper Series wp2014n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Isaac Ehrlich, 2009. "The Mystery of Human Capital as Engine of Growth, or Why the US Became the Economic Superpower in the 20th Century," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(56), pages 41-93, October -.
  4. Isaac Ehrlich & Jinyoung Kim, 2015. "Immigration, Human Capital Formation, and Endogenous Economic Growth," Journal of Human Capital, University of Chicago Press, vol. 9(4), pages 518 - 563.
  5. Turnovsky, Stephen J., 2015. "Economic growth and inequality: The role of public investment," Journal of Economic Dynamics and Control, Elsevier, vol. 61(C), pages 204-221.
  6. Christian Morrisson & Fabrice Murtin, 2009. "The century of education," Working Papers halshs-00586751, HAL.
  7. Felicia Ionescu, 2011. "Risky Human Capital and Alternative Bankruptcy Regimes for Student Loans," Journal of Human Capital, University of Chicago Press, vol. 5(2), pages 153 - 206.

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