Theoretical and empirical studies on human capital Kuznets curve

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530336
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Kyushu International University
• Principal Investigator: OGATA Takashi 九州国際大学, 経済学部, 教授 (50150389)
• Co-Investigator(Kenkyū-buntansha): TOMODA Yasunobu 神戸市外国語大学, 外国語学部, 准教授 (30437280) ; MATSUO Miki 九州国際大学, 経済学部, 准教授 (50437282) ; SAITO Takashi 明治学院大学, 経済学部, 准教授 (60437283)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 所得格差 / 人的資本 / 経済発展

Outline of Final Research Achievements

In this study, we have presented a model that generates the human capital Kuznets curve without assuming increasing returns to education. In the theoretical literature, the human capital Kuznets curve is derived by assuming increasing returns to scale in models that set human capital accumulation as the engine of economic growth. In contrast, introducing Stone-Geary preferences, we show that the Kuznets curve can be derived, without assuming increasing returns, in a two perods OLG model. In the early stages of economic development, poor individuals must prioritize consumption for subsistence over the education of their children. Only rich individuals can adequately educate their children, as education is a luxury good. Thus, the gap in human capital expands between poor and rich households. As the economy grows, however, education expenditure rises. The marginal productivity of education expenditure diminishes, and the gap in human capital falls.

Free Research Field

公共経済学