Persistant inequality and economic growth: human capital interconnection
Persistant inequality and economic growth: human capital interconnection

Summary/Abstract: In this paper, I argue that government can directly influence human capital interconnection between persistent inequality and economic growth. I claim that government ought to provide access to education for the poor. I explain that inequality persists as the poor are significantly restricted from credit markets. I corroborate my argument with a model of zero mobility in a steady state. I emphasize this notion of persistent inequality since, ironically, its existence justifies progressive redistributive transfers, which are positively correlated with growth despite of distortionary taxation.

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