The Coevolution of Human Capital and Industrial Structure

by

Francesco Luna and Alessandro Perrone

 

 


The contribution, is mainly designed as an exercise for the ``interested reader''. The model tries to depict the dynamical interaction between the structure of enterprises (as captured by their size) and human capital represented by the skills available in the pool of workers in the economy. A successful entrepreneur can share with her/his workers part of her/his profit. Once an imitation process is introduced among workers, these initially successful ``professions'' will spread among workers modifying the pool of human capital from which new entrepreneurs will draw their work-force. The ex-ante distribution of skills is hence modified and evolves ``interactively'' with the size distribution of firms. Certain regularities are pointed at and hypotheses formulated.
Unanswered questions are left to the reader to be investigated.


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