Growth and inequality under different hierarchical education regimes

Graziella Magalhaes () and David Turchick

No 2020_07, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: We study the impacts of different educational regimes on growth and income inequality using a twostage human capital model with heterogeneous agents that takes the hierarchical nature of education into account. The differentiation of educational stages sheds new light on the impacts of human capital accumulation on growth and inequality. Both at the basic (elementary and secondary) and the advanced (higher) educational stages, the school system may be either public or private. Our analysis shows that the educational regime with the highest growth rate has private basic education. The completely public (private) regime is the one in which inequality vanishes the fastest (slowest), albeit leading to the lowest (highest) growth. If the government is to fund only one educational stage, such a decision will hinge on elasticities of the human capital production function and on the interest rate.

Keywords: Human capital; growth; inequality; educational regime; hierarchical education (search for similar items in EconPapers)
JEL-codes: I24 O15 O40 (search for similar items in EconPapers)
Date: 2020-06-19, Revised 2020-06-25
New Economics Papers: this item is included in nep-gro and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Growth and inequality under different hierarchical education regimes (2022)
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