NONLINEAR NEIGHBORHOOD INTERACTIONS AND INTERGENERATIONAL TRANSMISSION OF HUMAN CAPITAL

@inproceedings{Ioannides2000NONLINEARNI,
  title={NONLINEAR NEIGHBORHOOD INTERACTIONS AND INTERGENERATIONAL TRANSMISSION OF HUMAN CAPITAL},
  author={Yannis M. Ioannides},
  year={2000}
}
The paper develops a model of the intergenerational transmission of human capital that reflects both individual choice and neighborhood interactions. It implies a law of motion for human capital that under certain conditions exhibits multiple equilibria that dier in terms of stability. As a result, the distribution of human capital across the population in the long run may not collapse into a single value. This result is entirely due to: first, presence of nonlinear neighborhood interactions… CONTINUE READING

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