| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 988311 | Structural Change and Economic Dynamics | 2011 | 11 Pages |
Abstract
ⶠStrategic dynamics of workers' decisions on skill investments are driven by imitative behavior. ⶠFirms' decisions on R&D activities depend on investment costs and the share of workers. ⶠFirms prefer to be innovative and workers prefer to be skilled when the share of them is above a certain threshold. ⶠThe economy can be “trapped” in a bad equilibrium with unskilled workers and non-innovative firms. ⶠWe conclude how public intervention can put the economy in the high equilibrium and what are the efficient ways to do so.
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Authors
Elvio Accinelli, Edgar J. Sanchez Carrera,