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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jdeveco.2005.09.004 Byline: Murat Iyigun (a)(b)(c), Randall P. Walsh (a) Keywords: Fertility; Education; Gender gap; Bargaining Abstract: We present a microeconomic model of the household in which there exists no difference in spousal preferences but childrearing is more time costly for women. Bargaining between the wife and the husband forms the basis of household decisions. Marital bargaining power is determined according to the incomes of the spouses, which in turn help to determine their reservation utility levels outside the marriage. The endogeneity of bargaining power introduces a non-cooperative element to the couples' decision-making problem because both the husbands and the wives take into account how their pre-marital education decisions affect their marital power and the share they extract from household resources in the future. The model predicts that wives invest more than is Pareto efficient in their education in order to increase their bargaining power in marriage. As a consequence, couples have fewer children and consume more when exogenous structural changes lead women to invest more in education. A corollary of the model is that empowering women directly through social reforms such as a lower gender wage gap leads to lower fertility and higher spousal consumption and leisure. Author Affiliation: (a) University of Colorado, United States (b) Sabanci University, Turkey (c) IZA, Germany Article History: Received 27 February 2004; Revised 15 September 2005; Accepted 20 September 2005

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jedc.2005.02.007 Byline: Murat Iyigun (a)(b) Abstract: This paper combines learning-by-doing with R&D activity that can be directed to either the discovery of new technologies (inventions) or the improvement of the quality of machines without altering their underlying technology (innovations). By doing so, it establishes that learning-by-doing is an important determinant of the relative share of resources allocated to inventive versus innovative activities. The dynamics of the model generates endogenous economic growth driven by cycles of technological change, where the pattern and timing of technological improvements are consistent with the historical evidence: (a) inventions and innovations play complementary roles in expanding the technology frontier; (b) when inventions occur they tend to arrive in clusters; and (c) all new technologies go through a life cycle, during the early stages of which a discovery is followed by a period of rapid economic growth and innovation and the late stages of which dwindling innovations and slower growth set the stage for new discoveries. Author Affiliation: (a) Department of Economics, University of Colorado at Boulder, Campus Box 256, Boulder, CO 80309-0256, USA (b) Department of Economics, Sabanci University, Orhanli, 34956, Istanbul, Turkey Article History: Received 6 October 2004; Accepted 19 February 2005

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.euroecorev.2004.09.008 Byline: Murat F. Iyigun (a), Ann L. Owen (b) Abstract: We distinguish learning in a static environment from that in a dynamic environment to show the existence of an important interaction between the development of new technologies and human capital accumulation. Because technological progress creates a more dynamic environment, it complements education in the production of human capital by enhancing adaptive skills. Higher levels of adaptability and human capital in turn determine the profitability of new inventions and the incentive to invest in new R&D. Differences in the history of technological progress produce different levels of adaptability and our results suggest why countries that have comparable levels of education and per capita incomes may differ significantly in their growth performance. Author Affiliation: (a) Department of Economics, University of Colorado, Campus Box 256, Boulder, CO 80309-0256, USA (b) Department of Economics, Hamilton College, 198 College Hill Road, Clinton, NY 13323, USA Article History: Received 29 September 2003; Accepted 17 September 2004

We examine empirically whether countries with relatively little production and export experience specialize in the production and export of more standardized and lower-technology products, and those with more production experience produce and export more recently developed and highertechnology products. Using panel data covering 127 countries and the period between 1970 and 1997, we find that export experience does help to account for the variation in export content. Exporting experience influences a country's export mix more than its production experience, suggesting that there may be a trade-induced component of learning by doing in foreign trade specialization. Keywords: Learning-by-doing; Human capital; Intra-industry; Trade JEL classification: 120; J24; O11; O31; O40

This paper incorporates the timing of childbearing into a growth model with endogenous fertility. It analyzes a model in which individuals' human capital stock depends positively on their education and parental human capital and in which producing and raising children and acquiring human capital are time intensive. The model highlights how changes in the human capital stock interact with individuals' timing of childbearing in affecting the evolution of the economy. It shows that increases in the human capital stock raise the opportunity cost of having children while young and induce individuals to delay childbearing. That, in turn, accelerates human capital accumulation in the future. The model also demonstrates that early childbearing may lead to a development trap with low human capital.

An analysis of human capital accumulation reveals that professional human capital takes on greater relative importance in developed economies and that individuals may allocate resources more efficiently in the presence of more than one type of human capital. The study shows that incentives to accumulate entrepreneurial human capital changes as the opportunity cost of entrepreneurship increases.