Creator: Chari, V. V. and Hopenhayn, Hugo Andres. Series: Models of economic growth and development Abstract:
We present a model of vintage human capital. The economy exhibits exogenous deterministic technological change. Technology requires skills that are specific to the vintage. A stationary competitive equilibrium is defined and shown to exist and be unique, as well as Pareto optimal. The stationary equilibrium is characterized by an endogenous distribution of skilled workers across vintages. The distribution is shown to be single peaked, and under general conditions there is a lag between the time when a technology appears and the peak of its usage, what is known as diffusion. An increase in the rate of exogenous technological charge shirts the distribution of human capital to more recent vintages and increases the relative wage of the unskilled workers in each vintage.
Subject (JEL): J24 - Demand and supply of labor - Human capital ; Skills ; Occupational choice ; Labor productivity, O41 - One, Two, and Multisector Growth Models, and O31 - Technological change ; Research and development - Innovation and invention : Processes and incentives