The impacts of education investment on skilled–unskilled wage inequality and economic development in developing countries

Lijun Pan

Economic Modelling, 2014, vol. 39, issue C, 174-181

Abstract: Four-sector general equilibrium models are established to investigate the impacts of increased governmental investment in education capital on skilled–unskilled wage inequality and economic development. The basic model, which assumes perfect competition in the producer services sector, shows that increased education capital investment from the government will unambiguously reduce skilled–unskilled wage inequality and conditionally promote economic development. Then the robustness of the basic model is substantiated by the extended model that incorporates the monopolistically competitive feature of the producer services sector.

Keywords: Education Investment; Skilled–unskilled wage inequality; Economic development; General equilibrium model (search for similar items in EconPapers)
JEL-codes: H52 J31 O12 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:39:y:2014:i:c:p:174-181

DOI: 10.1016/j.econmod.2014.02.040

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