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The Quality of Public Education in Unequal Societies: The Role of Tax Institutions

Pantelis Kammas (), Anastasia Litina () and Theodore Palivos

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the effect of income inequality on the quality of public education in the presence of weak institutions and tax evasion. Our theoretical model predicts that higher level income inequality within a country leads to lower quality of public education and that this effect is diminishing on the quality of institutions. The effect of inequality operates via two channels, namely via an impact on the resources allocated to public education and via an impact on the number of individuals participating in the public schooling scheme. Exploiting variations in the levels of inequality and governance across countries, the empirical analysis confirms the theoretical predictions.

Keywords: Quality of Public Education; Income Inequality; Tax Evasion. (search for similar items in EconPapers)
JEL-codes: D63 H26 I2 (search for similar items in EconPapers)
Date: 2013-12-13
New Economics Papers: this item is included in nep-edu, nep-iue, nep-pbe and nep-pub
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