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On High‐Skill And Low‐Skill Equilibria: A Markov Chain Approach

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  • Andrea Mario Lavezzi

Abstract

In this paper we propose to study the dynamics of human capital accumulation by means of a Markov chain. We identify the conditions for the emergence of ergodic and nonergodic dynamics, and relate them to various characteristics of an economic system. The model may generate high‐skill and low‐skill equilibria as well as intermediate situations. Policy implications are also discussed.

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  • Andrea Mario Lavezzi, 2006. "On High‐Skill And Low‐Skill Equilibria: A Markov Chain Approach," Metroeconomica, Wiley Blackwell, vol. 57(2), pages 121-157, May.
    • Handle: RePEc:bla:metroe:v:57:y:2006:i:2:p:121-157
    DOI: 10.1111/j.1467-999X.2006.00236.x
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    Cited by:

    1. Ricardo Azevedo Araujo & Helmar Nunes Moreira, 2014. "Lyapunov stability in an evolutionary game theory model of the labour market," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(1), pages 41-53.
    2. Araujo, Ricardo Azevedo, 2011. "Lyapunov Stability in an Evolutionary Game Theory Model of the Labor Market," MPRA Paper 29957, University Library of Munich, Germany.

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