The Importance of Ability

Buly Cardak

No 599, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: A model of education where the distribution of innate abilities is the source of heterogeneity is investigated. Public and private education models are investigated and compared. Human capital follows a first order Markov process which is shown to converge to a unique stationary distribution in both education systems. Income distributions are characterised using simulations which suggest positive skewness for both types of education.

Keywords: EDUCATION; HUMAN CAPITAL; INCOME DISTRIBUTION (search for similar items in EconPapers)
JEL-codes: D31 I22 J24 (search for similar items in EconPapers)
Pages: 35 pages
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:599

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