Human capital, growth, and inequality in Russia

TY - JOUR

T1 - Human capital, growth, and inequality in Russia

AU - FAN, Chengze, Simon

AU - OVERLAND, Jody

AU - SPAGAT, Michael

PY - 1999/12/1

Y1 - 1999/12/1

N2 - Our model captures the fact that Russia has both much human capital and an education system that produces the wrong skills for a market economy. We define a rule for the timing of educational restructuring that is Pareto optimal and that dominates all later times in a Paretian sense while simultaneously reducing inequality. We demonstrate that failure to implement restructuring early in the transition process is likely to produce a very long delay that will significantly reduce Russia's human capital. A retreat from subsidizing public education is Likely to be counterproductive, We argue that early educational restructuring should be emphasized in Russia's transition strategy.

AB - Our model captures the fact that Russia has both much human capital and an education system that produces the wrong skills for a market economy. We define a rule for the timing of educational restructuring that is Pareto optimal and that dominates all later times in a Paretian sense while simultaneously reducing inequality. We demonstrate that failure to implement restructuring early in the transition process is likely to produce a very long delay that will significantly reduce Russia's human capital. A retreat from subsidizing public education is Likely to be counterproductive, We argue that early educational restructuring should be emphasized in Russia's transition strategy.

UR - http://commons.ln.edu.hk/sw_master/2135

U2 - 10.1006/jcec.1999.1617

DO - 10.1006/jcec.1999.1617

M3 - Journal Article (refereed)

VL - 27

SP - 618

EP - 643

JO - Journal of Comparative Economics

JF - Journal of Comparative Economics

SN - 0147-5967

IS - 4

ER -