Literacy traps

Society-wide education and individual skill premia

Vidya Atal, Kaushik Basu, John Gray, Travis Lee

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

Using a model of an O-ring production function, the present paper demonstrates how certain communities can get caught in a low-literacy trap in which each individual finds that it is 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.

Original languageEnglish
Pages (from-to)137-148
Number of pages12
JournalInternational Journal of Economic Theory
Volume6
Issue number1
DOIs
StatePublished - 6 Oct 2010

Fingerprint

Literacy
Education
Trap
Coordination failure
Human capital
Investing
Educational policy
Production function

Keywords

  • Education
  • Literacy
  • O-ring
  • Skill formation
  • Traps

Cite this

Atal, Vidya ; Basu, Kaushik ; Gray, John ; Lee, Travis. / Literacy traps : Society-wide education and individual skill premia. In: International Journal of Economic Theory. 2010 ; Vol. 6, No. 1. pp. 137-148.
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Literacy traps : Society-wide education and individual skill premia. / Atal, Vidya; Basu, Kaushik; Gray, John; Lee, Travis.

In: International Journal of Economic Theory, Vol. 6, No. 1, 06.10.2010, p. 137-148.

Research output: Contribution to journalArticleResearchpeer-review

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