THE IMPACT OF PRIVATE AND PUBLIC HUMAN CAPITAL INVESTMENT ON ECONOMIC GROWTH AND INEQUALITY MITIGATION
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DOI:
https://doi.org/10.34238/tnu-jst.14164Abstract
The purpose of this paper is to examine how investments in the development of human capital affect economic growth and inequality reduction. The study looks into how government spending from taxes and parents' bequests fund the stock of human capital. The three stages of life of the overlapping generation model and heterogeneous agents, along with endogenous growth theory, form the basis of the research technique. The primary finding is that the paper demonstrates the dynamics of the accumulation of both human and physical capital, as well as the presence of an endogenous balanced growth path. Another finding is that inequality between skilled and unskilled workers slows economic progress. As it happens, the government's implementation of increased public goods transfers results in a decrease in economic inequality. Additionally, the economy can lower income inequality without impairing economic growth at the capital income tax threshold.Downloads
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