Article 2006

On high-skill and low-skill equilibria: A markov chain approach

Metroeconomica
Journal · Vol. 57 · Issue 2 · pp. 121-157
Abstract

In this paper we propose to study the dynamics of human capital accumulation by means of a Markov chain. We identify the conditions for the emergence of ergodic and nonergodic dynamics, and relate them to various characteristics of an economic system. The model may generate high-skill and low-skill equilibria as well as intermediate situations. Policy implications are also discussed. © 2017 Wiley. All rights reserved.

Keywords

Author Keywords

Not provided

Index Keywords

Author Affiliations
Università di Pisa, Pisa, PI, Italy
Funding & Acknowledgements
No funding information
References 10 References
1 Daron Acemoglu, And, Productivity differences, Quarterly Journal of Economics, 116, 2, pp. 563-606, (2001)
2 Information Incentives and Bargaining in the Japanese Economy, (1988)
3 Mathematical Theory of Infectious Diseases and Its Applications, (1975)
4 Stochastic Models for Social Processes, (1982)
5 Berman, Eli, Changes in the demand for skilled labor within U. S. Manufacturing: Evidence from the annual survey of manufactures, Quarterly Journal of Economics, 109, 2, pp. 367-397, (1994)
6 Theory of Stochastic Processes, (1965)
7 Finegold, David L., The failure of training in Britain: Analysis and prescription, Oxford Review of Economic Policy, 4, 3, pp. 21-53, (1988)
8 Finegold, David L., Breaking Out of the Low-skill Equilibrium, Education Economics, 1, 1, pp. 77-83, (1993)
9 International Comparisons of Vocational Education and Training for Intermediate Skills, (1991)
10 American Mathematical Monthly, (1962)
Quick Actions
Full Text via DOI
Citation Metrics
1
Times Cited (Scopus)

References 10
Document Identifiers