On High-Skill and Low-Skill Equilibria: a Markov Chain Approach
- Authors: LAVEZZI AM
- Publication year: 2006
- Type: Articolo in rivista
- OA Link: http://hdl.handle.net/10447/12182
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.