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Published online by Cambridge University Press:  07 March 2013

Ahmed S. Rahman
United States Naval Academy
E-mail address:


This paper develops a model that endogenizes both directed technologies and demography. Potential innovators decide which technologies to develop after considering available factors of production, and individuals decide the quality and quantity of their children after considering available technologies. This interaction allows us to evaluate potentially divergent development paths. We find that unskilled labor–biased technological growth can induce higher fertility and lower education, exerting downward pressure on growth in per-person income. Despite this, for most plausible developing-country scenarios, unskilled intensive growth produces more per-person income than skill-intensive growth. This result is robust to a variety of growth modeling assumptions.

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