search query: @author Chiu, W. H. / total: 3
reference: 2 / 3
| Author: | Chiu, W. H. |
| Title: | Income inequality, human capital accumulation and economic performance |
| Journal: | Economic Journal
1998 : JAN, VOL. 108:446, p. 44-59 |
| Index terms: | INCOMES INEQUALITY HUMAN CAPITAL CAPITAL ACCUMULATION ECONOMIC PERFORMANCE |
| Language: | eng |
| Abstract: | This study shows that greater income equality implies higher human capital accumulation and economic performance in an overlapping-generations model with heterogeneity in income and talent. Given liquidity constraints and declining marginal utility, individuals with a given level of talent receive education if their initial income is higher than a threshold level and the threshold is lower for more talented individuals. Assuming that the more talented create more human capital, greater initial income equality for one generation then imply higher aggregate human capital accumulated by that generation and also an improvement in all subsequent generations' initial income distributions. |
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