Given the interdependences between human capital accumulation and technological change, skill gaps may arise in equilibrium. However, they are not necessarily inefficient, and in this paper we present a model in which the simple absence of such a skill gap can be inefficient.

Given the interdependences between human capital accumulation and technological change, skill gaps may arise in equilibrium. However, they are not necessarily inefficient, and in this paper we present a model in which the simple absence of such a skill gap can be inefficient.

This is a very brief note which considers how to incorporate directly into the measurement of literacy a procedure for penalizing anti-female bias in its gender-related distribution. The ‘gender-adjusted' literacy measure L* advanced in this note reflects the cost of failing to achieve...