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Substitutability in Human Capital Formation and Education Inequality

Author

Listed:
  • Lin Zhang

    (Kindai University)

Abstract

This paper shows that substitutability in human capital formation could influence inequality in education. By incorporating a model of self-selection in education where individuals are heterogeneous in initial wealth and innate ability, we show that any increase in the substitutability of innate ability for initial wealth reduces educational inequality.

Suggested Citation

  • Lin Zhang, 2019. "Substitutability in Human Capital Formation and Education Inequality," Economics Bulletin, AccessEcon, vol. 39(1), pages 55-63.
    • Handle: RePEc:ebl:ecbull:eb-18-00708
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I1-P7.pdf
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    References listed on IDEAS

    as
    1. Charlot, Olivier & Decreuse, Bruno, 2010. "Over-education for the rich, under-education for the poor: A search-theoretic microfoundation," Labour Economics, Elsevier, vol. 17(6), pages 886-896, December.
    2. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
    3. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
    4. Gyimah-Brempong, Kwabena & Gyapong, Anthony O., 1992. "Elasticities of factor substitution in the production of education," Economics of Education Review, Elsevier, vol. 11(3), pages 205-217, September.
    5. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts," NBER Working Papers 6385, National Bureau of Economic Research, Inc.
    6. Mejia, Daniel & St-Pierre, Marc, 2008. "Unequal opportunities and human capital formation," Journal of Development Economics, Elsevier, vol. 86(2), pages 395-413, June.
    7. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Human capital; Education inequality; Heterogeneity; Substitutability;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education

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