The Stages of Human Capital and Economic Growth: Does the Direction of Causality Matter for the Rich and the Poor?

2015 ◽  
Vol 127 (1) ◽  
pp. 243-302 ◽  
Author(s):  
Bahar Bayraktar-Sağlam
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
The Poor ◽  
The Rich

scholarly journals A Discrete Heterogeneous-Group Economic Growth Model with Endogenous Leisure Time

2009 ◽  
Vol 2009 ◽  
pp. 1-17
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Distribution ◽  
Growth Model ◽  
Time Allocation ◽  
Capital Accumulation ◽  
Economic Growth Model ◽  
National Economic ◽  
The Rich ◽  
Main Engine

This paper proposes a one-sector multigroup growth model with endogenous labor supply in discrete time. Proposing an alternative approach to behavior of households, we examine the dynamics of wealth and income distribution in a competitive economy with capital accumulation as the main engine of economic growth. We show how human capital levels, preferences, and labor force of heterogeneous households determine the national economic growth, wealth, and income distribution and time allocation of the groups. By simulation we demonstrate, for instance, that in the three-group economy when the rich group's human capital is improved, all the groups will economically benefit, and the leisure times of all the groups are reduced but when any other group's human capital is improved, the group will economically benefit, the other two groups economically lose, and the leisure times of all the groups are increased.

scholarly journals THE RICH AND THE POOR IN A SIMPLE MODEL OF GROWTH AND DISTRIBUTION

2016 ◽  
Vol 20 (7) ◽  
pp. 1934-1952 ◽  
Author(s):  
Kirill Borissov
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Simple Model ◽  
Disposable Income ◽  
State Equilibrium ◽  
Positional Concerns ◽  
The Poor ◽  
The Rich ◽  
Intertemporal Equilibrium ◽  
Unique Steady State

We consider a model of economic growth with altruistic agents who care about their consumption and the disposable income of their offspring. The agents' consumption and the offspring's disposable income are subject to positional concerns. We show that, if the measure of consumption-related positional concerns is sufficiently low and/or the measure of offspring-related positional concerns is sufficiently high, then there is a unique steady-state equilibrium, which is characterized by perfect income and wealth equality, and all intertemporal equilibira converge to it. Otherwise, in steady-state equilibria, the population splits into two classes, the rich and the poor; under this scenario, in any intertemporal equilibrium, all capital is eventually owned by the households that were the wealthiest from the outset and all other households become poor.

DIFFERENTIAL FERTILITY AND ECONOMIC DEVELOPMENT

2013 ◽  
Vol 18 (5) ◽  
pp. 1048-1068 ◽  
Author(s):  
Hideki Nakamura ◽  
Yoshihiko Seoka
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Capital Stock ◽  
Initial Ratio ◽  
Differential Fertility ◽  
The Poor ◽  
Rich People ◽  
The Rich ◽  
Persistent Poverty

This paper considers differential fertility and analyzes how the fertility of people caught in poverty disturbs their escape from poverty. For escape from poverty, it is necessary that the average human capital stock exceed certain thresholds before the ratio of the number of poor to rich people increases more rapidly than the human capital level of rich people. Thus, the escape depends on a race between the accumulation of human capital by the rich and the accumulation of children by the poor. A high initial ratio of the number of poor to rich people would imply persistent poverty.

scholarly journals Pengaruh Zakat, Infak, dan Sedekah terhadap Pertumbuhan Ekonomi Indonesia

2020 ◽  
Vol 6 (1) ◽  
pp. 101
Author(s):  
Dewi Purwanti
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Basic Needs ◽  
Poor People ◽  
Panel Regression ◽  
Distribution Of Wealth ◽  
The Poor ◽  
The Rich ◽  
Positive Effect

Zakat is obligatory for all Muslims while infaq and alms are sunah. Zakat, infaq, and alms (ZIS) make distribution of wealth from the rich to the poor people. If the poor people are able to fulfill their basic needs, they can work well and contribute positively to the economy in various sectors. Zakat, infaq, and alms are expected to be one of the alternative policies to increase economic growth. However, to find out whether zakat, infaq, and alms have succeeded in positively contribute to economic growth, research is needed to prove the existence of the influence of zakat, infaq and alms in Indonesia. The purpose of this study is to determine the effect of zakat, infaq, and alms on the economy. This study uses a panel regression analysis with driscoll and kraay standars errors. The results of this study showed that zakat, infaq, and alms have positive effect on Indonesia's economic growth.

scholarly journals Making Business Work for Development: Issues for Small to Medium Enterprises

2021 ◽  
Author(s):  
◽  
Paul Thompson
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Poverty Alleviation ◽  
Global Economy ◽  
Poverty Reduction ◽  
Significant Proportion ◽  
Global Market ◽  
The Poor ◽  
The Rich ◽  
Medium Enterprises

<p>This thesis examines the question of whether business can be made to work for development. Can the standards that are used to measure development projects be applied to the outcomes of business ventures in developing countries? Proponents of neoliberal economic globalisation claim that economic growth is, by definition, good for the poor, and that the opening of global markets gives unprecedented opportunities for poverty reduction. 'Aid for Trade' is now a significant proportion of ODA funding. This is aid that is directed at assisting developing countries to be able to enter the global market. The claim is that the removal of trade barriers and the facilitation of smooth trade processes will be the key to achieving the MDG targets for poverty alleviation. Literature however suggests that such claims are much exaggerated, and that the global market does not automatically work to benefit the poor. Even where good rates of growth are achieved in a country, the poor are left behind, with widening income gaps between the rich and poor. This thesis examines these issues before investigating the concept of 'pro-poor business'. Economic growth can be structured to have positive benefits for the poor. It does not happen automatically, but it can be intentionally built into economic growth structures. There are some basic and fairly simple steps which all business could adopt to assist in poverty alleviation. Beyond this there are business ventures that are proactive in targeting the needs of poor communities. The thesis looks at case studies of six businesses started by expatriate entrepreneurs in six Asian countries. The businesses are investigated by a qualitative study that uses an emailed questionnaire followed up by further email and phone discussions. The businesses have been chosen to illustrate the possibilities over a range of types and sizes of business, and the degree to which they are intentional in targeting specific poverty issues. The businesses are asked questions both about their business structures and also about the extent to which they achieve development oriented goals. Issues faced by the businesses in this melding of business and development concerns are examined. The conclusion is that there are opportunities arising from globalisation that can be taken and shaped to enable the poor to become participants in the global economy.</p>

scholarly journals The Effectiveness of Zakat in Developing Muslims in Malaysia

2019 ◽  
Vol 3 (2) ◽  
pp. 127-138
Author(s):  
Khairul Azhar Meerangani
Keyword(s):  
Human Capital ◽  
Social Welfare ◽  
Equitable Distribution ◽  
The Third ◽  
The Poor ◽  
Optimum Utilization ◽  
The Rich ◽  
Islamic Faith ◽  
Welfare Distribution

Zakat is the third of the five pillars of Islamic faith, relating to wealth and welfare of the society that helps to close the gap between the poor and the rich. The efficient and systematic zakat management is able to propel it’s potential as an instrument of human developments especially among Muslims. The optimum utilization of zakat funds is essential to improving the quality and potential of every Muslim. In Malaysia, zakat is administrated by the Islamic Religious Council (IRC) in every state. The IRC is responsible for determining the beneficiary's qualification and the type of relief that is appropriate based on the background of each recipient so that the relief can be utilized to fulfill their needs. This study aims to assess the potential of zakat in developing the quality of Muslims in Malaysia by highlighting the practice of each IRC in distributing relief to each qualified zakat recipient. The distribution statistics and the form of programs provided by the IRC were analyzed descriptively to see the potential of zakat itself practically in improving the quality of Muslims. The study found that the IRC has provided various programs aimed at improving the quality of asnaf through equitable distribution of economics, social welfare distribution, human capital production and upgrading of education. Thus, every Muslim, especially zakat payers, should take the opportunity to equally engage with the IRC to ensure that zakat funds can be optimized for the developments of Muslims in Malaysia.

The Politics of Poverty

Social Change ◽  
2019 ◽  
Vol 49 (2) ◽  
pp. 232-240
Author(s):  
Digvijay Kumar
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Poverty Line ◽  
Poverty Rate ◽  
Social Dimensions ◽  
Welfare Policies ◽  
The Poor ◽  
The Social ◽  
The Rich ◽  
Poverty Levels

The reduction in the official poverty rate seen in relation with increasing morbidity status, a mammoth income gap between the rich and the poor, ambiguous methodology followed to calculate Below Poverty Line Census and government policies on poverty reduction tends to question the whole poverty line debate. The official commitment to higher economic growth may reflect booming economic growth but it also has led to a large gap between the rich and the poor in both regional and social dimensions. To look into the causes and ameliorate poverty levels, various committees and policies have identified poverty levels. Using different criteria and methods, they still have failed to look at the social and political aspects. It is politics that has engulfed the whole discourse over universalisation of social welfare policies as some sort of justification behind the nation’s fiscal deficit and subsidy constraint-related questions.

scholarly journals POVERTY AND ECONOMIC GROWTH: A REVIEW

2016 ◽  
Vol 22 (1) ◽  
pp. 156-175 ◽  
Author(s):  
Marinko ŠKARE ◽  
Romina PRŽIKLAS DRUŽETA
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Relevant Literature ◽  
Causal Link ◽  
Poor Growth ◽  
Research Issues ◽  
The Poor ◽  
The Rich ◽  
Similar Growth

The objective of this paper is to review and attempt a synthesis of the relevant literature on growth versus poverty, and to analyze the causal link between the two phenomena. Research issues that drive our study are: Does economic growth tend to “raise all boats” as Kuznets (1955) pointed out? What is the role of the pattern of growth in the process of development? Which factor must we consider in designing appropriate pro-poor growth policies? This paper finds considerable variation in the poverty–reducing effectiveness of growth across time and authors. Also, our analysis speaks in favour of the fact that as growth occurs poverty reduces, no matter the level of inequality. Identically, similar growth pattern has different effects on poverty reduction. We conclude that growth is good for poverty alleviation but it is not enough. The extent to which growth reduces poverty depends upon how we measure poverty, and upon absorptive capacity of the poor, the pace and pattern of growth. In times when the rich are getting richer and the poor are getting poorer, “trickle-down” effect becomes a scenario that need to be reviewed.

HOW DO ELEMENTARY AND HIGHER EDUCATION AFFECT HUMAN CAPITAL ACCUMULATION AND INEQUALITY? A NOTE

2011 ◽  
Vol 16 (1) ◽  
pp. 151-158 ◽  
Author(s):  
Tetsuya Nakajima ◽  
Hideki Nakamura
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Elementary Education ◽  
Capital Accumulation ◽  
Education Level ◽  
Human Capital Accumulation ◽  
Demand For Education ◽  
The Poor ◽  
Long Run ◽  
The Rich

We clarify the different effects of elementary and higher education on human capital accumulation and inequality. The productivity of elementary education plays a significant role in the widening of inequality regardless of the existence of multiple steady states. When the productivity of elementary education is low, the poor cannot afford higher education in the long run because the demand for education by the rich makes the price of education too high for the poor. However, the effect of its productivity on the attainable education level is ambiguous. A rise in the productivity of higher education always increases the education level.

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