Inequality and Education Choice

Tetsuo Ono and Yuki Uchida

No 16-17-Rev., Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study presents a two-class, successive generations model with human capi- tal accumulation and the choice to opt out of public education. The model demon- strates the mutual interaction between inequality and education choice and shows that the interaction leads to two locally stable steady-state equilibria. The exis- tence of multiple stable equilibria implies a negative correlation between inequality and enrollment in public education, which is consistent with evidence from OECD countries. This study also presents a welfare analysis using data from OECD coun- tries and shows that introducing a compulsory public education system leaves the rst generation worse off, though improves welfare for future generations of indi- viduals in a lower class. The results also suggest that the two equilibria are not Pareto-ranked.

Keywords: Public education; opting out; inequality (search for similar items in EconPapers)
JEL-codes: D70 H52 I24 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2016-05, Revised 2017-01
New Economics Papers: this item is included in nep-edu and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1617R.pdf (application/pdf)

Related works:
Journal Article: Inequality and education choice (2020)
Working Paper: Inequality and education choice (2019)
Working Paper: Inequality and Education Choice (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1617r

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().