Endogenous persistent inequality

Falilou Fall

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: The purpose of this paper is to demonstrate that inherited human capital is a powerful vector of inequality formation and persistence, irrespective of its links with financial wealth endowment. This paper argues that the agents who inherit a low level of human capital bear a greater utility cost in their educational investment and that there are different profiles of returns on human capital within the economy. These two arguments are sufficient to generate an endogenous formation of workers' and entrepreneurs' groups and a continuum of steady states with inequality. Allowing for self-employment in the model generates the possibility of equality at equilibrium in addition to the inequality equilibrium with the emergence of a middle class

Keywords: Endogenous inequality; human capital; occupational choice; education (search for similar items in EconPapers)
JEL-codes: D33 J24 J31 J62 (search for similar items in EconPapers)
Pages: 33 084
Date: 2005-10
New Economics Papers: this item is included in nep-dge and nep-ent
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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https://halshs.archives-ouvertes.fr/halshs-00196084 (application/pdf)

Related works:
Working Paper: Endogenous persistent inequality (2005)
Working Paper: Endogenous persistent inequality (2005)
Working Paper: Endogenous persistent inequality (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:v05059

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