Grossman, Gene M., Helpman, Elhanan, Oberfield, Ezra and Sampson, Thomas ORCID: 0009-0006-2237-5497 (2021) Endogenous education and long-run factor shares. American Economic Review: Insights, 3 (2). 215 - 232. ISSN 2640-205X
Text (Endogenous_Education)
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Abstract
We study the determinants of factor shares in a neoclassical environment with capital-skill complementarity and endogenous education. In this environment estimates of the elasticity of substitution between capital and labor that fail to account for human capital levels will be biased upward. We develop a model with overlapping generations, technology-driven neoclassical growth, and ongoing increases in educational attainment. For a class of production functions featuring capital-skill complementarity, a balanced growth path exists and is characterized by an inverse relationship between the rates of capital-and labor-augmenting technological progress and the capital share in national income.
Item Type: | Article |
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Official URL: | https://www.aeaweb.org/journals/aeri |
Additional Information: | © 2021 American Economic Association |
Divisions: | Economics |
Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HB Economic Theory |
JEL classification: | E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E25 - Aggregate Factor Income Distribution J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models |
Date Deposited: | 13 Oct 2020 09:06 |
Last Modified: | 12 Dec 2024 02:21 |
URI: | http://eprints.lse.ac.uk/id/eprint/106968 |
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