Increasing returns, human capital, and the Kuznets curve

Gerhard Glomm, B. Ravikumar

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

We present a simple model of human capital accumulation which generates the Kuznets curve as an equilibrium outcome. The central ingredient that helps generate the Kuznets curve in the model is what we call short-run increasing returns to scale in the learning technology. The learning technology exhibits increasing returns to scale, but only in the short run, since one of the factors of production, time, is bounded above by the endowment. We show that short-run increasing returns to scale is necessary to obtain the Kuznets curve, but not sufficient.

Original languageEnglish (US)
Pages (from-to)353-367
Number of pages15
JournalJournal of Development Economics
Volume55
Issue number2
DOIs
StatePublished - Apr 1 1998

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics

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