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A model of economic development with lumpy human capital accumulation

Aubhik Khan ()

No 943, 2008 Meeting Papers from Society for Economic Dynamics

Abstract: At the household level, the model predicts very low rates of savings for poor households, and high level of intergenerational persistence in both wealth and education. Poverty is persistent across generations as poor households are unable to undertake the large investments in education that are necessary to move their children into the skilled labour force.

Date: 2008
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More papers in 2008 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
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