The name is absent

In this case, in the long- run, ony 6% ofthe population is qμali...ed and

consists only ofentrepreneurs. G eneration aftergeneration, 4% ofthe popu-
Iation decumulateswealth and carnota? ord human capital investmentany
more. 2.7% ofthem moves downward along the occupationalladder. The
remaining1.3% moves downwards only between educationalclasses.

Descendantsfrom non-quali.edpeopledonotchangeeitheroccupational,
oreducationalclass.

W orkers'dynasties corvergpt:o(b^W;nq)* = 0:111732.

N on-quali.edentrepreneurs’dynastiesconvergetothesetofsteadystates
(b^e,nq)* 2 (o:111732; 0:5028], parametr^zedtoeaChcynastysctec)reecfinP¢dency.
Q uali...ed entrepreneurs' dynasties, with a degree ofind! dency lower than
0.6, Convergpto(b^e;^q)* 2 (0:9; 1:9056).

T helong-run distribution ofwealth is sketchedin Figure2 (III). L iquidity
constraints forthemajorityofthepopulation, duetotheincreasein thecost
of education, become binding during the accumulation process because of
the lowindividualaltruism. The increase in thecostofeducation and in the
individual egoism forces the great majority of the population into poverty
and non-quali.cation. In otherwords the increase in the quali.ed people's
income due to the increase in h does not o? set the cost ofeducation itself
and the lowshare ofindividualincome leftas bequests.

L ong-run average wealth is 0.23 and the long-run distribution ofwealth
is more concentrated (G ini coc<I dent is 0.332).

In the lastlong-run scenario the whole population is trapped in poverty
and non-quali.cation. In this case non-quali.ed progenitors' dynasties do
notchange educationaland occupationalclass. D escendants from quali.ed
workers become non-quali.ed workers while some descendants from quali-
.ed entrepreneurs remain entrepreneurs, butthey do notqualify anymore.
T heothers movedownwardalongeducationaland occupationalclasses: they
become non-quali.ed workers. T hese are characterized by a degree oftech-
nical intel dencywhich guarantees the prο..tabi iityofentrepreneurship ony
ifthey qualify, when they fallintonon-quali.cation they are notenough ef-
.cientto.nd itstillpro.table to undertake the entrepreneurialinvestment
project. Theyare9.9567% ofthepopulation. 4.33% ofthepopulation exper-
iments onlydownward mobilitybetween educationalclasses. In thelong-run
9 9:567%  of the population is composed by non-quali.ed workers, 0.433%

consists ofnon-quali.ed entrepreneurs. M oreoverthe very high egoism re-
duces incomedispersion and long-run wealth distribution almostcollapses to
a single steady state (see.gure 2-4 (IV)). A ctually the setofsteady states

20

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