Social Learning in Dualistic Societies: Segregation, Growth and Distribution

Ulf von Kalckreuth

No 571, Discussion Papers from Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre

Abstract: Using a simple model of social learning, we endogenize growth and distribution in a dualistic developing society. For given parameters of the learning technology, a trade-off between growth and equity results. On the other hand, more intensive social interaction between agents will raise the growth rate and lower the income differential at the same time. The economic consequences of lacking social integration are sluggish growth and high inequality.

JEL-codes: D33 D83 O15 O33 O41 (search for similar items in EconPapers)
Date: 1999
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