| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5055467 | Economic Modelling | 2011 | 5 Pages |
We bring in hierarchical education and skill formation within a standard Jonesian specific-factor model of production and trade for a developing economy. There are three types of labor, unskilled, medium skilled and high-skilled. The unskilled can only develop into medium-skilled and medium-skilled into high-skilled. As capital becomes internationally mobile, educational capital gets concentrated in particular types of education. In the process the society gets polarized between the highly educated and the absolutely uneducated.
Research Highlights⺠Multi-factor model of production and trade. ⺠Specificity of factors. ⺠Distinction between educational capital and physical capital. ⺠Concentration of capital. ⺠Polarization between educated and uneducated.
