Learning, matching and growth

Derek Laing, Theodore Palivos, Ping Wang

Research output: Contribution to journalArticlepeer-review

64 Scopus citations

Abstract

We examine an endogenous growth model in which market frictions are an integral part of the economic environment. Workers invest in education when young, which raises their productivity once employed. The level of schooling also acts as a key determinant of the rate of economic growth by influencing workers’ ability to accumulate additional human capital on-the-job. Once schooling is completed, workers search for employment. The division of the surplus between vacancies and searching workers is characterized, as is the optimal level of education. The economy may display multiple steady-state growth paths.

Original languageEnglish (US)
Pages (from-to)115-129
Number of pages15
JournalReview of Economic Studies
Volume62
Issue number1
DOIs
StatePublished - Jan 1995
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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