Vol. 6 No. 11 (2010)

Artículos

Human capital formation and intergenerational savings

Published 2010-07-05

  • Alí AAlí Bujari
    • ,
  • Humberto Ríos Bolivar

Alí AAlí Bujari
ESE-IPN, Sección de Estudios de Posgrado e Investigación

Humberto Ríos Bolivar
ESE-IPN, Sección de Estudios de Posgrado e Investigación

Abstract

The accumulation of capital, and therefore savings, have a key role in economic growth. The aim of this paper is to model the main situations where, for a rational agent is optimal not to save but to devote its resources to other objectives, such as human capital accumulation. From the point of view of its economic structure, investment in human capital takes place in two stages: the first is the childhood and the second labor stage of life. To analyze the problem of children's needs, we added a further life span model of Diamond (1965), the infant stage. Examine the differential behavior of agents based on their wealth when, in deciding on the education of their children decide on human capital formation. We found that a representative family of few resources spends his income to the formation of human capital and therefore not saved. This happens even in an open economy where the foreign interest rate is lower than domestic.

Keywords

Human capital, savings, economic growth, infancy

PDF (Spanish)

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