Abstract

SALGADO-VEGA, Jesús  and  ZEPEDA-MERCADO, Gabriela. Inequality and growth in Mexico an analysis by State. Pap. poblac [online]. 2012, vol.18, n.71, pp.213-237. ISSN 2448-7147.

We used an overlapping generation model developed by Castelló-Climent and Doménech (2008) that considers the dynamics of human capital in two generations 1982 and 2007 for the States of the Mexican Republic. We find several steady states that depend on the initial conditions of the distribution in education. The lower steady state is a poverty trap in which the children of poor families have low life expectancy and they have unskilled works, so it is the case of the State of Chiapas. The empirical evidence suggests the mechanism of life expectancy explains a great part of the relations between the inequality and the accumulation of the human capital. The analysis developed here explains why the inequality in the distribution of per capita income can be harmful for the accumulation of human capital. We make a simulation of generations for the States of Mexico to calculate the years that will take to obtain a higher level of education or to reach a better educative level.

Keywords : overlapping generation model; human capital; accumulation; education.

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