IQ, Social Mobility and Growth

John Hassler () and J.V. Rodriguez Mora

Working Papers from Stockholm - International Economic Studies

Abstract: Intelligent agents may contribute to higher technological growth, if assigned appropriate positions in the economy. These positive effects on growth are unlikely to be internalized on a competitive labor market. The allocation of talent depends on the relative award the market assigns to intelligence versus other individual merits, which will also influence intergenerational social mobility. To illustrate this, we present an endogenous growth model where each agent can choose to be a worker or an entrepreneur.

Keywords: SOCIAL MOBILITY; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: J62 O1 (search for similar items in EconPapers)
Date: 1998
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