Human Capital Inequality, Life Expectancy and Economic Growth

Amparo Castello-Climent and Rafael Domenech

No 604, Working Papers from International Economics Institute, University of Valencia

Abstract: This paper presents a model in which inequality affects per capita income when individuals decide to invest in education taking into account their life expectancy, which depends to a large extent on the human capital of their parents. Our results show the existence of multiple steady states depending on the initial distribution of education. The low steady state is a poverty trap in which children raised in poor families have low life expectancy and work as non-educated workers. The empirical evidence suggests that the life expectancy mechanism explains a major part of the relationship between inequality and human capital accumulation.

Keywords: Life expectancy; human capital; inequality. (search for similar items in EconPapers)
JEL-codes: J10 O10 O40 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-09
New Economics Papers: this item is included in nep-dev, nep-edu, nep-hea, nep-hrm and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Human Capital Inequality, Life Expectancy And Economic Growth (2008)
Working Paper: Human Capital Inequality, Life Expectancy and Economic Growth (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:iei:wpaper:0604

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