Human Capital , Trade Unions and Banks

نویسنده

  • Ekkehard Ernst
چکیده

A process of endogenous human capital formation is analyzed in combination with the existence of trade unions and banks. By lowering opportunity costs for schooling, trade unions provide incentive for human capital investments for parts of the workforce. Imperfect competition in the banking sector creates a self-selection situation favorable for long-term investment giving firms the possibility to invest in human capital intensive technologies and providing jobs for skilled labor. The complementarity of skilled labor and long-term finance in the production function of innovative firms gives rise to a coordination problem leading to multiple stationary states characterized by distinct industrial specialization and different growth rates and welfare levels. JEL-Codes: G20, J24, O17, O41

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تاریخ انتشار 2005