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

  • Isaac Ehrlich

    (State University of New York at Buffalo and NBER)

  • Jinyoung Kim

    ()

    (Department of Economics, Korea University)

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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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
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Handle: RePEc:iek:wpaper:0704
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