Adult Learning, Economic Growth and the Distribution of Income

Stauvermann, P.J. and Kumar, Ronald R. (2018) Adult Learning, Economic Growth and the Distribution of Income. Economies, 6 (1). pp. 1-12. ISSN 2227-7099

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Abstract

Technological change causes three consequences: it guarantees economic growth, it requires employees to acquire more skills and human capital, and it increases inequality if employees are not capable adapting to new technologies. The second consequence makes it almost necessary for employees to learn during their whole working life, thereby accelerating technological change. Accordingly, the OECD (the Organization for Economic Co-operation and Development) and many governments supports the idea of lifelong learning, but it remains unclear how to finance the education of adult students who are working efficiently. In this paper, we use an overlapping generation model with human capital accumulation and inequality to derive a mechanism which reduces income inequality and provides an incentive for all adults to invest more in education. As a consequence, the growth rate of per capita income will increase and income inequality will be reduced

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
Divisions:	Faculty of Business and Economics (FBE) > School of Accounting and Finance Faculty of Business and Economics (FBE)
Depositing User:	Ronald Kumar
Date Deposited:	12 Feb 2018 23:54
Last Modified:	12 Feb 2018 23:54
URI:	http://repository.usp.ac.fj/id/eprint/10548

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