American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Intelligence, Social Mobility, and Growth
American Economic Review
vol. 90,
no. 4, September 2000
(pp. 888–908)
Abstract
We develop a model where the allocation of human resources, intergenerational social mobility, and technological growth are jointly determined. High growth endogenously increases the equilibrium return to innate cognitive ability and makes the allocation of individuals depend more on innate ability and less on social background. Individuals with a higher level of innate cognitive ability can deal better with less known, bur more productive, technologies and thus choose a higher rate of technological growth. A social allocation based on innate ability and high growth will thus reinforce each other, implying the possibility of multiple endogenous growth equilibrium.Citation
Hassler, John, and Jose V. Rodriguez Mora. 2000. "Intelligence, Social Mobility, and Growth." American Economic Review, 90 (4): 888–908. DOI: 10.1257/aer.90.4.888JEL Classification
- O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O40 Economic Growth and Aggregate Productivity: General
- J62 Job, Occupational, and Intergenerational Mobility; Promotion