December 15, 2006

Schooling inequality and the rise of research

During the last twenty years the share of researchers in the workforce has been rising in OECD countries. In the same period, the distribution of schooling has become more equal.

This paper proposes that the rise in the proportion of researchers is caused by the decline in schooling inequality. In particular, comparative static analysis of a semi-endogenous growth model demonstrates that a rising proportion of researchers can be a steady state phenomenon when schooling inequality is declining over time. This outcome can be accompanied by a rise in the wages of high-skilled labor compared to low-skilled labor.


Bas Straathof