Economic Development, Wage Structure and Implicit Insurance on Human Capital
1992 (English)Report (Other academic)
This paper demonstrates how smaller wage differentials in the developed world are welfare-enhancing by providing implicit insurance on human capital, while larger wage differentials in underdeveloped countries exacerbate the problem of underinvestment in human capital. These results arise in a general equilibrium model when there are no markets to insure against different educational outcomes.
Place, publisher, year, edition, pages
Stockholm: IIES , 1992. , 24 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 512
economic development, wage differentials, return to education, implicit insurance
IdentifiersURN: urn:nbn:se:su:diva-41824OAI: oai:DiVA.org:su-41824DiVA: diva2:337836
Published in connection with a visit at the IIES.2010-08-092010-08-092010-08-09