Intergenerational Mobility, Human Capital Composition and Distance to Technological Frontier

Sujata Basu ()

Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers from Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India

Abstract: An endogenous skilled biased growth model has been considered to show that along the growth path wage gap widened and both upward and downward mobility fall. This implies that education becomes more correlated with initial conditions and less related with the cognitive ability. Growth occurs through the twin channels of technology - imitating from the world technology frontier and innovating on its own technology level - innovation being more skilled-intensive than imitation. An imperfect capital market has been considered where individual's education decision depends on the cognitive ability as well as on the parental income. Moreover, it is shown that growth enhancing education policy leads to absolute convergence of all the economies to the world technology frontier. In the imitation-innovation regime, life time utility gap within skilled as well as unskilled human capital rise due to parental income differences. Furthermore, life time utility gap within skilled human capital rises due to cognitive ability differences.

Pages: 41 pages
New Economics Papers: this item is included in nep-cse, nep-gro, nep-ino, nep-knm and nep-upt
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.jnu.ac.in/sites/default/files/DP07_2015.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ind:citdwp:15-07

Access Statistics for this paper

More papers in Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers from Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India Contact information at EDIRC.
Bibliographic data for series maintained by Shamprasad M. Pujar ().