Technological change, human capital structure, and multiple growth paths

Yong Jin Kim, Jong-Wha Lee

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This paper presents a theoretical model to analyze the effects of technology change on growth rates of income and human capital in the uncertain environments of technology. The uncertainty comes from two sources; the possibility of a technology advance and the characteristics of new technologies. We set up an overlapping generations model in which young agents invest in both width and depth of human capital in order to adopt new technologies. The model develops explicitly the micro-mechanism of the role of human capital in adopting new technologies as well as that of the process of human capital production in uncertain environments. In our model, a higher level for width of human capital relative to the level of depth leads one country to a higher growth path. We also show that an economy can have different growth paths depending on the initial structure of human capital and the uncertainty about the nature of new technologies. In particular, new technologies with more uncertain characteristics may adversely affect human capital accumulation and income growth, leading the economy to a low growth trap.

Original languageEnglish
Pages (from-to)1-40
Number of pages40
JournalADB Economics Working Paper Series
Volume149
Publication statusPublished - 2009 Dec 1
Externally publishedYes

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technological change
human capital
new technology
income
uncertainty
effects of technology
economy
capital accumulation
Human capital
Technological change
Capital structure

ASJC Scopus subject areas

  • Economics and Econometrics
  • Geography, Planning and Development
  • Political Science and International Relations

Cite this

Technological change, human capital structure, and multiple growth paths. / Kim, Yong Jin; Lee, Jong-Wha.

In: ADB Economics Working Paper Series, Vol. 149, 01.12.2009, p. 1-40.

Research output: Contribution to journalArticle

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