Bounded learning by doing, inequality, and multi-sector growth: A middle-class perspective.
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Authors
Desdoigts, Alain
Jaramillo, Fernando
Editor
Publication date
2018-07
Document language
eng
Publisher
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Journal ISSN
Volume Title
Abstract
This study presents a multisector model of middle-class-led economic
growth, whereby, on the one hand, the middle class plays a key role
in determining technical progress, while, on the other hand, both its
size and income share are the result of past economic growth. Learn-
ing by doing, which is assumed to be sector-speci c, bounded from
above, and constrained by a minimum scale restriction, is the primary
source of productivity gains. The emphasis is then placed on the
entire income distribution, which a¤ects the composition of demand
-span of goods consumed- and in turn, the speed and the extent of
the learning process in the set of goods produced. The model exhibits
an inverted-U relationship between inequality and economic growth,
which re ects the following trade-o¤: An economy cannot learn both
quickly and simultaneously in a wide range of sectors. It is constrained
in this respect by its income/skill distribution and the size of its labor
force, with consequences on growth-enhancing strategies by means of
income redistributions.
Description
Códigos JEL
D31 - Personal Income, Wealth, and Their Distributions, L16 - Industrial Organization and Macroeconomics; Industrial Structure and Structural Change; Industrial Price Indices, O33 - Technological Change: Choices and Consequences; Diffusion Processes, O40 - Economic Growth and Aggregate Productivity: General
item.page.subjectjelspa
D31 - Renta personal, riqueza y sus distribuciones, L16 - Organización industrial y macroeconomía; Estructura industrial y transformacion estructural; Índices de precios industriales, O33 - Cambio tecnológico: opciones y consecuencias; Difusión, O40 - Crecimiento económico y productividad agregada: Generalidades
Keywords
Learning by doing, Middle-class-led consumption, Inequality, Multi-sector growth, Income redistribution
Keywords
Aprender haciendo, Consumo dirigido por la clase media, Desigualdad, Crecimiento multisectorial, Redistribución de ingresos
