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Michael Kremer: The O-Ring Theory
of Economic Growth
•
Michael Kremer
(1993): The O-Ring Theory of Economic Development:
Quarterly Journal of Economics
100:3
August), pp. 551-575
•
<
https://pdfs.semanticscholar.org/61e4/
b9935c01f5620f7fa5fd20fe6c248152095f.pdf
>
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<
https://www.icloud.com/keynote/
065s1qQKHgBP90nMshrWmh3sg
>
•
“
This paper proposes a production function describing processes subject
to mistakes in any of several tasks…. It shows that high-skill workers-those
who make few mistakes-will be matched together in equilibrium, and that
wages and output will rise steeply in skill. The model is consistent with
large income differences between countries, the predominance of small
fi rms in poor countries, and the positive correlation between the wages of
workers in different occupations within enterprises
…”
