Galor, Oded; Moav, Omer - C.E.P.R. Discussion Papers - 1999
higher. In later stages of development, however, as the return to human capital increases due to capital …-skill complementarity, human capital becomes the prime engine of growth and equality, given credit constraints, stimulating investment in … human capital and economic growth. As wages increase, however, credit constraints become less binding and the overall effect …