Why Isn't Convergence Instantaneous? Young Workers, Old Workers, and Gradual Adjustment.

A-Tier
Journal: Journal of Economic Growth
Year: 1998
Volume: 3
Issue: 1
Pages: 5-28

Authors (2)

Kremer, Michael (University of Chicago) Thomson, James (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

The human capital of young and old workers are imperfect substitutes both in production and in providing on-the-job training. This helps explain why capital does not flow from rich to poor countries, causing instantaneous convergence of per capita output. If each generation chooses its human capital optimally, given that of the preceding and succeeding generations, human capital follows a unique rational-expectations path. For moderate substitutability, human capital within each sector oscillates relative to that in other sectors, but aggregate human capital converges to the steady state monotonically. Copyright 1998 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jecgro:v:3:y:1998:i:1:p:5-28
Journal Field
Growth
Author Count
2
Added to Database
2026-01-25