Externalities of human capital

Stefano Bosi*, Teresa Lloyd-Braga, Kazuo Nishimura

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)


Investments in human capital are individual and collective choices carrying significant external effects. Educated parents and friends accelerate our own human capital accumulation. Skilled colleagues at work increase our own productivity. Sharing experiences with cultured people is gratifying by itself. We introduce human capital externalities in a stylized model à la Uzawa (1965) and we find that growth can be no longer balanced and the equilibrium can be globally indeterminate. Labor supply goes to one and capital reaches an upper ceiling in a finite lapse of time above the initial critical value of labor supply ensuring the balanced growth path. Under a constant tax rate, the government should set a positive rate to speed up human capital accumulation during transition to the capital ceiling.
Original languageEnglish
Pages (from-to)145-158
Number of pages14
JournalMathematical Social Sciences
Publication statusPublished - Jul 2021


  • Externalities
  • Growth
  • Human capital


Dive into the research topics of 'Externalities of human capital'. Together they form a unique fingerprint.

Cite this