Human Capital Formation and Cross-Country Comparison of Inequality∗
نویسندگان
چکیده
The paper studies the effects of cross-country differences in human capital formation on income distributions. Our overlapping generations economy has the following features: (1) consumers are heterogenous with respect to ability and parental human capital; (2) intergenerational transfers take place via parental education and, public investments in education Þnanced by taxes (possibly, with a level determined by majority voting); (3) due to investment in human capital, which is a factor of production, we have endogenous growth. Besides exploring several cross-country variations in the production of human capital, some attributed to home-education and others related to publiceducation, we indicate how the level of public education can lead to negative growth rates and affect the intragenerational income inequality along the equilibrium path. JEL classiÞcation: D91; E25; H52
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