EconPapers    
Economics at your fingertips  
 

A Model of Educational Investments, Social Concerns and Inequality

Andrea Gallice () and Edoardo Grillo

No 405, Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: We consider a model in which educational investments entail productivity gains, sig- naling power, and social status. The latter depends on the agent's relative achievement in one of three dimensions: (i) innate skills, (ii) level of schooling, and (iii) income. We study the three scenarios separately and characterize the conditions under which social concerns increase or decrease educational and income inequality. Inequality increases (decreases) if education lowers the stigma suffered by low skilled workers less (more) than it boosts the prestige enjoyed by high skilled workers. We discuss the expected results of some policies in light of these findings.

Keywords: education; signaling; social status; inequality. (search for similar items in EconPapers)
JEL-codes: D03 D10 I20 I21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu
Date: 2015, Revised 2018
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.carloalberto.org/assets/working-papers/no.405.pdf (application/pdf)

Related works:
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:cca:wpaper:405

Access Statistics for this paper

More papers in Carlo Alberto Notebooks from Collegio Carlo Alberto Contact information at EDIRC.
Bibliographic data for series maintained by Giovanni Bert ().

 
Page updated 2018-10-25
Handle: RePEc:cca:wpaper:405