A Simple Theory on the Effects of Industrialization∗

نویسنده

  • Ahmed S. Rahman
چکیده

Historically, industrialization has been associated with falling relative returns to skills. This fact is at odds with most unified theories of industrialization, which tend to imply rising skill premia as natural concomitants to economic growth. This paper develops a very simple model of historical growth to help solve this puzzle. Assuming that human capital is both a consumption good and an investment good, the model demonstrates how gradually rising investments in human capital, non-monotonic fertility rates, and falling skill premia can all be explained within one theory. •

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تاریخ انتشار 2011