The costs of meritocraty: an agent-based model of education, inequality and growth

Hannah Engljaehringer, Mauro Napoletano (), Elisa Palagi and Andrea Roventini
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Hannah Engljaehringer: Scuola Superiore Sant'Anna di Pisa - Institute of Economics
Mauro Napoletano: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, SSSA - Scuola Superiore Sant'Anna, UniCA - Université Côte d'Azur
Elisa Palagi: SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa]
Andrea Roventini: SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa]

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Abstract: This paper presents a novel agent-based framework to examine the impact of access to education on distributional and macroeconomic outcomes. We simulate a meritocratic economy where households' financial prospects and labour productivity depend on their ability to obtain education. By doing so, we show how unequal access to education exacerbates personal income and wealth inequality, hinders social mobility, and dampens economic growth—highlighting the hidden costs of meritocracy. Conversely, policy interventions aimed at broadening educational access and reducing disparities in income can promote more inclusive economic growth and enhance social mobility. These results underscore the critical role of predistributive policies in promoting both equity and long-term economic performance.

Keywords: economic growth; social mobility; meritocracy; education; Income inequality (search for similar items in EconPapers)
Date: 2025-07-10
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Published in Inequality and growth, 2025, ⟨10.2139/ssrn.4947795⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05478188

DOI: 10.2139/ssrn.4947795

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