Human capital, growth, and inequality in Russia
Journal of Comparative Economics
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.
Copyright © 1999 by Academic Press
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Fan, C. S., Overland, J., & Spagat, M. (1999). Human capital, growth, and inequality in Russia. Journal of Comparative Economics, 27(4), 618-643. doi: 10.1006/jcec.1999.1617