IDEAS home Printed from https://ideas.repec.org/p/ags/ubzefd/18765.html
   My bibliography  Save this paper

Overlapping

Author

Listed:
  • Wang, Yong
  • Stark, Oded

Abstract

We propose a new microeconomic explanation for the divergent experiences of economies in forming human capital. We suggest that the positive effect of a longer life expectancy on human capital formation arises from two separate effects: a life expectancy effect and a prolonged intergenerational overlap effect. We argue that the duration of the overlap between generations and the associated parental support can affect the marginal cost of human capital formation and hence its level: parental support is cheaper than market financing. We thus attribute the strong correlation between the formation of human capital and life expectancy not merely to a higher marginal benefit arising from a longer payback period but also to a lower marginal cost arising from a prolonged intergenerational overlap. We provide conditions under which a longer overlap results in a higher level of per capita output.

Suggested Citation

  • Wang, Yong & Stark, Oded, 2002. "Overlapping," Discussion Papers 18765, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:18765
    DOI: 10.22004/ag.econ.18765
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/18765/files/dpdp0050.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.18765?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Wang, Yong & Michael C M Leung, 2003. "Endogenous Health Care, Life Expectancy, and Economic Development," Royal Economic Society Annual Conference 2003 218, Royal Economic Society.
    2. Stark,Oded, 1999. "Altruism and Beyond," Cambridge Books, Cambridge University Press, number 9780521663731, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Foreman-Peck, James, 2011. "The Western European marriage pattern and economic development," Explorations in Economic History, Elsevier, vol. 48(2), pages 292-309, April.
    2. Carolina Arteaga Cabrales, 2011. "Human Capital Externalities and Growth," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 29(66), pages 12-47, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oded Stark & Yong Wang, 2005. "The Intergenerational Overlap and Human Capital Formation," Review of International Economics, Wiley Blackwell, vol. 13(1), pages 45-58, February.
    2. Stark, Oded & Wang, You Qiang & Wang, Yong, 2005. "Altruism: Evolution and a Repercussion," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 84-105.
    3. Liliana Pezzin & Robert Pollak & Barbara Schone, 2009. "Long-term care of the disabled elderly: do children increase caregiving by spouses?," Review of Economics of the Household, Springer, vol. 7(3), pages 323-339, September.
    4. Dipankar Purkayastha, 2004. "A theory of reciprocal gifts," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(4), pages 312-319, December.
    5. Stark, Oded, 2019. "Behavior in reverse: reasons for return migration," Behavioural Public Policy, Cambridge University Press, vol. 3(1), pages 104-126, May.
    6. Steen Thomsen & Caspar Rose, 2004. "Foundation Ownership and Financial Performance: Do Companies Need Owners?," European Journal of Law and Economics, Springer, vol. 18(3), pages 343-364, December.
    7. Elissa Braunstein & Nancy Folbre, 2001. "To Honor and Obey: Efficiency, Inequality, and Patriarchal Property Rights," Feminist Economics, Taylor & Francis Journals, vol. 7(1), pages 25-44.
    8. Schwarze, Johannes, 2004. "Living Conditions of Children and Parental Well-Being – Evidence from German Data on Life Satisfaction," IZA Discussion Papers 1200, Institute of Labor Economics (IZA).
    9. Elke Holst & Mechthild Schrooten, 2006. "Migration and Money - What Determines Remittances?: Evidence from Germany," Discussion Papers of DIW Berlin 566, DIW Berlin, German Institute for Economic Research.
    10. Ken Yamada, 2006. "Intra-family transfers in Japan: intergenerational co-residence, distance, and contact," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1839-1861.
    11. Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1335-1357, July.
    12. Stark, Oded & Cukrowska-Torzewska, Ewa, 2018. "Gender differentiation in intergenerational care-giving and migration choices," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 118-134.
    13. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    14. Mudziviri Nziramasanga & Jonathan Yoder, 2013. "The check in the mail: household characteristics and migrant remittance from the US to Mexico," Applied Economics, Taylor & Francis Journals, vol. 45(8), pages 1055-1073, March.
    15. Claire Naiditch & Radu Vranceanu, 2009. "Migratory Equilibria with Invested Remittances," Post-Print halshs-00376472, HAL.
    16. Louis Kaplow, 2000. "A Framework for Assessing Estate and Gift Taxation," NBER Working Papers 7775, National Bureau of Economic Research, Inc.
    17. Stark, Oded, 1988. "On marriage and migration," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 4(1), pages 23-37.
    18. Alessandro Cigno & Gianna Giannelli & Furio Rosati & Daniela Vuri, 2006. "Is there such a thing as a family constitution? A test based on credit rationing," Review of Economics of the Household, Springer, vol. 4(3), pages 183-204, September.
    19. Louis Kaplow, 2005. "The Value of a Statistical Life and the Coefficient of Relative Risk Aversion," Journal of Risk and Uncertainty, Springer, vol. 31(1), pages 23-34, July.
    20. Leslie Moscow McGranahan, 2000. "Charity and the Bequest Motive: Evidence from Seventeenth-Century Wills," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1270-1291, December.

    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ubzefd:18765. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/zefbnde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.