Investments in human capital are individual and collective choices carrying significant external effects. Educated parents friends accelerate our own accumulation. Skilled colleagues at work increase productivity. Sharing experiences with cultured people is gratifying by itself. We introduce externalities a stylized model à la Uzawa (1965) we find that growth can be no longer balanced the equil...

Conventional wisdom about the relationship between income distribution and economic development has been subjected to dramatic transformations in the past century. While Classical economists advanced the hypothesis that inequality is bene…cial for economic development, the Neoclassical paradigm, which had subsequently dominated the …eld of macroeconomics, dismissed the Classical hypothesis and ...

Should a country invest more in human or physical capital? The present paper addresses this issue, considering the impact of different factor intensities between sectors on both optimal human and physical capital accumulation. Using a two-sector overlapping generations setting with endogenous growth driven by human capital accumulation, we prove that relative factor intensity between sectors dr...

People go to school and firms do R&D. These activities result in human capital accumulation and new ideas and technologies which make economies grow. We try to capture the interaction between human capital and R&D by allowing for endogenous human capital accumulation in an economy where the number of products and technologies expands because profit maximizing entrepreneurs do R&D. We find that,...

This paper constructs a general equilibrium search-matching model with heterogeneous workers. Workers choose whether to invest in general human capital or specific human capital when they enter the labor market. We analyze how unemployment benefits affect the choice of the type of human capital investment.