Mathematical Modeling of Investments in Human Capital and the Divergence Effect

Abstract

A simple dynamic model is proposed for analyzing the number of human capital depending on the unit costs of its formation. An analytical stationary solution is presented in the approximation of the linearized model. The analysis of the stability of a stationary solution shows the instability regime in the case of accelerated scientific and technological progress and the efficiency of human capital
increases rapidly. The expected result is the divergence of countries in this parameter. Human capital is growing rapidly in rich countries, the income gap with poor countries is increasing.