Dynamic model of economic growth including the delay between the formation and use of human capital

Following the macroeconomic dynamic models of the Solow type and taking into account the accumulated human capital the mathematical model is constructed. The model additionally takes into account the time lag between the formation of human capital (time of study) and its entry into the labor market. This means that the human capital participating in the economy at the present time was formed in the previous period. The dynamic model contains a differential equation with a deviating argument to simulate the time lag. Particular analytical stationary solutions in the approximation of a small parameter are constructed. The analyses of analytical solutions are carried out. There is model dependence between time lag formation — involvement of human capital and the intensive economic growth rates parameters. An interesting effect is noted: the economic agents with outstripping rates of population growth have worse intensive indicators of human capital formation (all other things being equal). At the same time economic agents with a higher level of technology have an advantage in accumulating human capital. As a consequence, the studied time delay may be a divergent factor in the rates of technological development between developed and poor countries. There is an accelerated population growth in developing countries and at the same time slow technological progress.