Human Capital Formation, Life Expectancy, and the Process of Development

S-Tier
Journal: American Economic Review
Year: 2005
Volume: 95
Issue: 5
Pages: 1653-1672

Authors (2)

Matteo Cervellati (not in RePEc) Uwe Sunde (Ludwig-Maximilians-Universität...)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a unified theory of the transition in income, life expectancy, education, and population size from a nondeveloped environment to sustained growth. Individuals optimally trade off the time cost of education with its lifetime returns. Initially, low longevity implies a prohibitive cost for human capital formation for most individuals. A positive feedback loop between human capital and increasing longevity, triggered by endogenous skill-biased technological progress, eventually provides sufficient returns for widespread education. The transition is not based on scale effects and induces population growth despite unchanged fertility. A simulation illustrates that the dynamics fit historical data patterns.

Technical Details

RePEc Handle
repec:aea:aecrev:v:95:y:2005:i:5:p:1653-1672
Journal Field
General
Author Count
2
Added to Database
2026-01-25