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The Evolution of Income and Fertility Inequalities Over the Course of Economic Development: A Human Capital Perspective
Isaac Ehrlich
State University of New York at Buffalo - Department of Economics; National Bureau of Economic Research (NBER); University of Chicago - University of Chicago Press; Institute for the Study of Labor (IZA)
Jinyoung Kim
SUNY at Buffalo, College of Arts & Sciences, Department of Economics
November 2004
NBER Working Paper No. w10890
Abstract:
Using an endogenous-growth, overlapping-generations framework where human capital is the engine of growth, we trace the dynamic evolution of income and fertility distributions and their interdependencies over three endogenous phases of economic development. In our model, heterogeneous families determine fertility and children’s human capital, and generations are linked via parental altruism and social interactions. We derive and test discriminating propositions concerning the dynamic behavior of inequalities in fertility, educational attainments, and three endogenous income inequality measures -- family-income inequality, income-group inequality, and the Gini coefficient. In this context, we also reexamine the "Kuznets hypothesis" concerning the relation between income growth and inequality.
Number of Pages in PDF File: 46
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Date posted: November 22, 2004
Suggested CitationEhrlich, Isaac and Kim, Jinyoung, The Evolution of Income and Fertility Inequalities Over the Course of Economic Development: A Human Capital Perspective (November 2004). NBER Working Paper No. w10890. Available at SSRN: http://ssrn.com/abstract=618572
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