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(Re)Distribution of Personal Incomes, Education and Economic Performance Across Countries

Günther Rehme

No DP2002-34, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In many OECD countries income inequality has risen, but surprisingly redistribution has as well. The theory attributes this partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U-shaped way on education. To maintain a given level of human capital it is shown that a less efficient schooling technology requires more resources, which lowers pretax and posttax income inequality as well as growth.

Keywords: Economic development; Education; Equality and inequality; Government spending policy (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (8)

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Working Paper: (Re-)Distribution of Personal Incomes, Education and Economic Performance Across Countries (2002) Downloads
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