The equalizing role of human resource intensive growth strategies: A theoretical model

Empirical evidence concerning the relationship between education-intensive development strategies and income distribution is used to formulate a growth model in which the variance of the dispersion rate of income is linked to the human and physical capital intensity of production. It is shown that, under plausible assumptions, the growth trajectory does not have a unique steady state. Of the possible steady states, for any two steady states characterized by equal per capita output and by different combinations of physical capital-labor ratio and average human capital, the income distribution associated with the steady state with the higher level of average human capital is Lorenz superior.