Education Choice, Endogenous Growth and Income Distribution PDF Download

Author: Buly A. Cardak
Publisher:
ISBN: 9781920697013
Category : Education
Languages : en
Pages : 51

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Author: Mark Gradstein
Publisher: MIT Press
ISBN: 9780262262880
Category : Business & Economics
Languages : en
Pages : 192

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Book Description
A theoretical framework for analyzing the complex relationship of education, growth, and income distribution. The dominant role played by the state in the financing, regulation, and provision of primary and secondary education reflects the widely-held belief that education is necessary for personal and societal well-being. The economic organization of education depends on political as well as market mechanisms to resolve issues that arise because of contrasting views on such matters as income inequality, social mobility, and diversity. This book provides the theoretical framework necessary for understanding the political economy of education—the complex relationship of education, economic growth, and income distribution—and for formulating effective policies to improve the financing and provision of education. The relatively simple models developed illustrate the use of analytical tools for understanding central policy issues. After offering a historical overview of the development of public education and a review of current econometric evidence on education, growth, and income distribution, the authors lay the theoretical groundwork for the main body of analysis. First they develop a basic static model of how political decisions determine education spending; then they extend this model dynamically. Applying this framework to a comparison of education financing under different regimes, the authors explore fiscal decentralization; individual choice between public and private schooling, including the use of education vouchers to combine public financing of education with private provision; and the social dimension of education—its role in state-building, the traditional "melting pot" that promotes cohesion in a culturally diverse society.

Author: Lionel Artige
Publisher:
ISBN:
Category :
Languages : en
Pages : 42

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Book Description
Public education is usually seen as having at least two desirable effects: fostering economic growth and reducing income inequality. This paper revisits both relations in a single model of occupational choice with an endogenous supply of teachers. First, we show that the impact of public education expenditures on economic growth depends both on the level of these expenditures and the shape of the human capital distribution. Second, our model shows that the relationship between public education spending and income inequality can be U-shaped. We provide empirical evidence for this U-shaped relationship. Finally, we calibrate our model for 8 OECD countries.

Author: Jie Zhang
Publisher:
ISBN:
Category : Education
Languages : en
Pages : 32

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Author: Walter W. McMahon
Publisher: Clarendon Press
ISBN: 019159119X
Category : Business & Economics
Languages : en
Pages : 318

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This book develops a new approach to measuring the total returns to human resource development through investment in education. Drawing on microanalytic foundations, it uses regional and worldwide data to estimate the net marginal contributions of education and new knowledge both to economic growth and to wider effects on democratization, human rights, political stability, health, net population growth rates, reduction of poverty, inequality in income distribution, crime, drug use, and the environment. The total impact of education policy changes on endogenous development is then estimated using an interactive model. This new approach is important to industrialized and developing countries alike. The diffusion of knowledge and the adaptation of new techniques has been identified as crucial to the growth process in the new endogenmous growth models, and is of increasing strategic importance in current knowledge-based globalizing economies. Similarly, the non-monetary returns from education are important in improving human welfare. Measurement of these non-market returns is a crucial but much neglected subject. It has proved frustrating, and existing microanalytic measures have proved piecemeal. The new approach developed here offers some comprehensive estimates and simulation techniques for finding more cost-effective policies, and also suggests new hypotheses for further microanalytic testing.

Author: David de la Croix
Publisher: Cambridge University Press
ISBN: 1107029597
Category : Business & Economics
Languages : en
Pages : 267

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Fertility choices depend not only on the surrounding culture but also on economic incentives, which have important consequences for inequality, education and sustainability. This book outlines parallels between demographic development and economic outcomes, explaining how fertility, growth and inequality are related. It provides a set of general equilibrium models where households choose their number of children, analysed in four domains. First, inequality is particularly damaging for growth as human capital is kept low by the mass of grown-up children stemming from poor families. Second, the cost of education can be an important determining factor on fertility. Third, fertility is sometimes viewed as a strategic variable in the power struggle between different cultural, ethnic and religious groups. Finally, fertility might be affected by policies targeted at other objectives. Incorporating new findings with the discussion of education policy and sustainability this book is a significant addition to the literature on growth.

Author: Bernhard Eckwert
Publisher: Academic Press
ISBN: 0128031913
Category : Business & Economics
Languages : en
Pages : 190

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Book Description
The Economics of Screening and Risk Sharing in Higher Education explores advances in information technologies and in statistical and social sciences that have significantly improved the reliability of techniques for screening large populations. These advances are important for higher education worldwide because they affect many of the mechanisms commonly used for rationing the available supply of educational services. Using a single framework to study several independent questions, the authors provide a comprehensive theory in an empirically-driven field. Their answers to questions about funding structures for investments in higher education, students' attitudes towards risk, and the availability of arrangements for sharing individual talent risks are important for understanding the theoretical underpinnings of information and uncertainty on human capital formation. - Investigates conditions under which better screening leads to desirable outcomes such as higher human capital accumulation, less income inequality, and higher economic well-being. - Questions how the role of screening relates to the funding structure for investments in higher education and to the availability of risk sharing arrangements for individual talent risks. - Reveals government policies that are suited for controlling or counteracting detrimental side effects along the growth path.

Author: Mr.David Coady
Publisher: International Monetary Fund
ISBN: 1475595743
Category : Business & Economics
Languages : en
Pages : 23

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Book Description
This paper presents new results on the relationship between income inequality and education expansion—that is, increasing average years of schooling and reducing inequality of schooling. When dynamic panel estimation techniques are used to address issues of persistence and endogeneity, we find a large, positive, statistically significant and stable relationship between inequality of schooling and income inequality, especially in emerging and developing economies and among older age cohorts. The relationship between income inequality and average years of schooling is positive, consistent with constant or increasing returns to additional years of schooling. While this positive relationship is small and not always statistically significant, we find a statistically significant negative relationship with years of schooling of younger cohorts. Statistical tests indicate that our dynamic estimators are consistent and that our identifying instruments are valid. Policy simulations suggest that education expansion will continue to be inequality reducing. This role will diminish as countries develop, but it could be enhanced through a stronger focus on reducing inequality in the quality of education.

Author: Mr.Se-Jik Kim
Publisher: International Monetary Fund
ISBN: 1451972962
Category : Business & Economics
Languages : en
Pages : 36

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Book Description
This paper addresses the growth, welfare, and distributional effects of credit markets. We construct a general equilibrium model where human capital is the engine of growth and individuals differ in their education abilities. We argue that the existence of credit markets encourages specialization, by which individuals choose during their youth to work or to receive formal education. This specialization unambiguously increases growth and welfare. The model also shows that in economies with high (low) average level of education abilities, the opening of credit markets induces a more disperse (equal) income distribution.

Author: Stephen J. Machin
Publisher: Elsevier
ISBN: 044453444X
Category : Business & Economics
Languages : en
Pages : 707

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Book Description
With contributions from leading researchers, this handbook presents an accurate, self-contained survey of the current state of the economics of education. It summarises the most recent discussions in journals and elucidates new developments.