← Search

Social Status, Education, and Growth

Chaim Fershtman^1,2; Kevin Murphy³; Yoram Weiss⁴

¹ Tel Aviv University · ² Tilburg University · ³ University of Chicago · ⁴ Tel Auiu University

This paper investigates the implications of social rewards on the allocation of talent in society and consequently on the process of economic growth. The authors consider two sources of heterogeneity among workers: nonwage income and innate ability. A greater emphasis on status may induce the 'wrong' individuals, that is, those with low ability and high wealth, to acquire schooling, causing workers with high ability and low wealth to leave the growth-enhancing industries. This crowding-out effect, taken alone, discourages growth. Growth may be enhanced by a more egalitarian distribution of wealth, which reduces the demand for status. Copyright 1996 by University of Chicago Press.

DOI

10.1086/262019

Volume

104 (1)

Pages

108-132

Language

en

Export

BibTeX

Sources

openalex crossref