The name is absent



A So dynasties descending from cu∣ali...ed workers and cu∣ali...ed entrepre-
neurs donctexperienceoccupaticnal mcb>i lity D escendants from a cu∣aii...∈d
worker converge to
(bw;q)* = (1 )(w ' ±h), 'h) = 2:25.  D escendants from a

cuali.ed entrepreneurconverge to a steady state which is parametrized to
. .........r..b.∙...∙>.⅜  ~____ fuo V (l °) |qKx(1 °i +h )-i(x+h )]

the dynasty s degree oftechnιcaι11 neX αency (be,q) =-----l1-(1-7)i-------i.

T he ∈ss ineXdentthedynasty thehicherthesteadystatewealth: (be;q)* 2
(2:2 5;9:83]
.

The dynamics of the dynasty coming from non-cuali.ed entrepreneur
are a little bit more complex. In this case dynasties chara
cterized by a
level of ineX dency lower than
e = 1 i(x-b)(1-7)-h = о,23233 succeed in
q                             1     qK (1-7)

accumulating enough wealth in order to invest in human capital.  T hey

become cuali.ed entrepreneurs, whereas dynasties characterized by a de-
græ of technical ineCdency
e ∙ ° ∙ °e;nq accumulate wealth converg-
■__.    ∕7en0V       (1-7)[qκ(1-°i)-iχ                  ._____ ɪ-   ■ ɪ. ■

ing to (be;nq)  = -----1-(1-7)i----i and remain ndn-euaii,,,ed.  Even in this

case, the higher the degree of ineX dency, the lower steady state wealth:
(be>nq)* 2 [0,69; 0,7).

Theevolution ofthe occupationalstructure ofthe population is summa-
rized in table 2-3: in the long-run 54% ofthe population do not invest in

education. 53.66% ofthe population consists ofunskilled workers. The re-
maining46% ofthe population is cuali.ed. The majorshare ofthe cuali.ed
populationismadeofentrepreneurs: theyare38.26% ofthepopulation. Only
entrepreneurs experimentoccupationalmobility: 16.26% ofnon-cuali.eden-
trepreneurs become cuali.ed entrepreneurs.

N Q

Q

marg. distr.

W

0,5366

0,5366

0,08 !   0,08

0,6166 !   0,6166

E

0,1633

0,0007

0,22 ! 0,382633

0,3833 !  0,3833

marg, distr.

0,7 !

0,5373

0,3 !  0,462633

1

G IN I =

0,263

!   0,367

T able 3: evolution of occupational distribution in scenario I (progenitors !long-run) .

A verage wealth increases, from 0.5 to 2.8 6, thanks tothe increase ofthe
cuali.ed entrepreneurialshare ofthe population6.

6A verage wealth is also an indicatorofaggregate utility. A ctually, given preferences,
aggregate utility is an increasingfunction ofaggregate income. Ifpopulation is constant,
aggregate utility is alsoan increasingfunction ofaverage income and wealth.



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