Intelligence, social mobility, and growth

We develop a model where the allocation of human resources, intergeneration al social mobility, and technological growth are jointly determined. High g rowth endogenously increases the equilibrium return to innate cognitive abi lity and makes the allocation of individuals depend more on innate ability and less on social background. Individuals with a higher level of innate co gnitive ability can deal better with less known, but more productive, techn ologies md thus choose a higher rate of technological growth. A social allo cation based on innate ability and high growth will thus reinforce each oth er, implying the possibility of multiple endogenous growth equilibria. (JEL J62, O1).