Journal Article

Interaction Between Endogenous Human Capital and Technological Change

Theo S. Eicher

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 63, issue 1, pages 127-144
Published in print January 1996 | ISSN: 0034-6527
e-ISSN: 1467-937X | DOI:
Interaction Between Endogenous Human Capital and Technological Change

Show Summary Details


This paper examines how interaction between endogenous human capital accumulation and technological change affects relative wages and economic growth. Private incentives to invest in human capital finance the employment of skilled labour in the education sector, while non-rival technology is a by-product of the education process. The absorption of new technologies into production is skill intensive, creates skill-biased labour demand, and increases the relative wage of skilled to unskilled labour. In contrast to recent models of endogenous growth, higher rates of technological change and growth may be accompanied by a higher relative wage but lower relative supply of skilled labour. Thus the model provides a theoretical foundation for the empirically observed relation between technological change and relative demand, supply and wages of skilled labour.

Journal Article.  0 words. 

Subjects: Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.