Composition of Public Education Expenditures and Human Capital Accumulation

Katsuyuki Naito and Keigo Nishida

No 826, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: This paper provides a simple theory to study how the allocation of public funds between primary and higher education affects human cap- ital accumulation. The allocation is endogenously determined through majority voting. Public funding for higher education is not supported when a majority is poor. In some cases, higher education starts to be realized as a majority of individuals accumulate enough human capital through primary edu- cation. Although the emergence of higher education can accelerate aggregate human capital accumulation, it widens income inequality because the very poor are excluded from higher ed- ucation and the declined budget share for primary education decreases its quality.

Keywords: Public Education; Economic Development; Income Inequality; Majority Voting (search for similar items in EconPapers)
JEL-codes: D72 O11 O15 O40 (search for similar items in EconPapers)
Pages: 13pages
Date: 2012-06
New Economics Papers: this item is included in nep-cdm, nep-edu and nep-lab
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Related works:
Working Paper: Composition of Public Education Expenditures and Human Capital Accumulation (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:826

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