Literacy Traps: Society-wide Education and Individual Skill Premia
Published By: BREAD on eSS | Published Date: February, 20 , 2009Using a model of O-ring production function, the paper demonstrates
how certain communities can get caught in a low-literacy trap in which each
individual finds it not worthwhile investing in higher skills because others are
not high-skilled. The model sheds light on educational policy. It is shown
that policy for promoting human capital has to take the form of a mechanism
for solving the coordination failure in people's choice of educational strategy.
Author(s): Kaushik Basu, Vidya Atal, John Gray, Travis Lee | Posted on: Dec 01, 2009 | Views(1273) | Download (673)