We examine the role of increased life expectancy in raising human capital investment during the process of economic growth. We develop a continuous time, overlapping generations model in which individuals make optimal schooling investment choices in the face of a constant probability of death. We present analytic results, followed by results from a calibrated version of the model using realistic estimates of the return to schooling. Mortality decline produces economically significant increases in schooling and consumption.
Mortality Decline, Human Capital Investment and Economic GrowthSebnem Kalemli-Ozcan, Harl Ryder, and David N. Weil ,
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Journal of Development Economics