modify the long-run occupationalstructure, the supportofthe long-run
distribution andthe long-run average andaggregate income andwealth.
T hings changes in scenarios I and III. Inhscenario I, the cilosed and irre-
dudbesetofpersistentstatesistheinterval (bw;q)* ; (be;q)*ax = [2.25; 9.83].
In the long- run all the pecpeare cμali...ed and Cng- run average wealth in-
creases with respect tc the genetic transmissicn hypcthesis. It gces frcm
2.863 tc5.05. M Crecverwealth concentration decreases: theG ini cce¢dent
becomes 0.1759.
T he factthattechnical ine¢ dency is purely stochastic; opens up a way
outofpoverty and non-cuali.cation to the sons ofnon-cuali.ed agents. In
thelong-run thewholepopulation is cuali.edandthegreatmajorityconsists
ofentrepreneurs (73% ofthe population). A nyway entrepreneurs are notal-
ways belongingtothe samedynasties, sincetherealways exists occupational
mobility. T able 7 summarizes the evolution ofthe occupationaldistribution
in this case.
|
N Q |
Q |
marg. |
distr. | ||
|
W |
0.5366 |
!0 |
0.08 ! 0.2666 |
0.6166 ! |
0.2666 |
|
E |
0.1633 |
!0 |
0.22 ! 0.7333 |
0.3833 ! |
0.7333 |
|
marg. distr. |
0.7 ! |
0 |
0.3 ! 1 |
____________1 | |
|
G IN I = |
0.263 ! |
0.1759 | |||
T able 7: evolution of occupational distribution in scenario I (progenitors !long-run)
T herefcre the stochastic transm i ssi on oftechni ca l i ndî ci ency bri ngs about
the possibility of social climbing. In the long-run the whole population is
cμaii...ed
In scenario III the situation is symmetric: in the long-run the whole
population is trapped in poverty and in non-cuali.cation and distributed
on the support[0.111732;0.50 2 8] . M ostofthe people are workers (76.66%).
Themean wealth is lower(0.156). The long-run occupationaldistribution is
summarized in Table8.
|
N Q |
Q |
marg. distr. | ||
|
W |
0.69 ! |
0.7666 |
0.01238 ! 0 |
0.70238 ! 0.7666 |
|
E |
0.21 ! |
0.2333 |
0.08762 ! 0^ |
0.29762 ! 0.2333 |
|
marg. distr. |
9.9 |
!1 |
0.1 ! 0 ~ |
1 |
|
G IN I = |
0.263 ! |
0.1993 | ||
T able 8:evolution of occupational distribution in scenario II I (progenitors !long-run)
24