Occupational Choice and Dynamic Indeterminacy

Mino, Kazuo and Shimomura, Koji and Wang, Pin (2004): Occupational Choice and Dynamic Indeterminacy. Published in: Review of Economic Dynamics (2004)

Abstract

This paper constructs a two-sector model of two-period lived overlapping generations with endogenous occupational choice where ability-heterogeneous agents choose whether to become educated when young and henceforth to become skilled when old. We show that endogenous occupational choice in this two-sector framework can result in dynamic indeterminacy without complicate preferences/technologies and without requiring the consumption-good production to be more capital-intensive.

• Item Type: MPRA Paper
• Language: English
• Keywords: occupational choice, overlapping generations, indeterminacy of equilibrium
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models; D - Microeconomics > D9 - Intertemporal Choice > D90 - General; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

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