Education as social agreement

Speaker:  Thomas Bassetti - Università di Padova
  Monday, January 25, 2010 at 12:30 PM Biblioteca DSE - Palazzina 32, ex Caserma Passalacqua

Abstract: This paper proposes an alternative explanation for the existence
of poverty traps. Assuming individual heterogeneity in the costs of
education and a labour market characterized by costly search, it shows
that poor countries are more likely to face a coordination failure in 
the accumulation of human capital. At the same time, the role of some
institutions in order to solve the coordination problem will emerge
clearly. With respect to previous models, the need of coordination is
among workers, and assumptions such as increasing returns to scale or
intergenerational spillovers are not necessary.

Programme Director
Angelo Zago

Publication date
January 9, 2010