Directed Technology Adoption, Human Capital Formation and World Income Distribution

34 Pages Posted: 29 May 2010

See all articles by Ioana C. Schiopu

Ioana C. Schiopu

ESADE Ramon Llull University - Department of Economics

Date Written: April 2010

Abstract

This paper investigates the effects of skill bias technical change at the frontier on the evolution of output and human capital in the adopting countries. The framework introduces a novel feature by connecting the direction of technology adoption to a sequential process of skill accumulation, where the returns of advanced human capital depend on the quality of basic education. I find that moderate skill bias produces convergence in output per capita, while strong skill bias leads to convergence clubs. The predictions of the model are broadly consistent with the evolution of world income distribution and educational attainments during 1960-2000.

Keywords: SBTC, technology adoption, basic and advanced education, convergence

JEL Classification: I21, O15, O33, O47

Suggested Citation

Schiopu, Ioana C., Directed Technology Adoption, Human Capital Formation and World Income Distribution (April 2010). Available at SSRN: https://ssrn.com/abstract=1616605 or http://dx.doi.org/10.2139/ssrn.1616605

Ioana C. Schiopu (Contact Author)

ESADE Ramon Llull University - Department of Economics ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

HOME PAGE: http://profesores.esade.edu/ioanaschiopu

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