IDEAS home Printed from https://ideas.repec.org/a/mhr/finarc/urnsici0015-2218(2002-200312)594_479epegaw_2.0.tx_2-u.html
   My bibliography  Save this article

Education Policies, Economic Growth and Wage Inequality

Author

Listed:
  • Güther Rehme

Abstract

It is assumed that education simultaneously affects growth and wage inequality. Human capital is taken as lumpy, and education policy has a direct bearing on growth, the number of high-skilled people, and wages. It is shown that the optimal policy for the unskilled is Rawlsian and implies high after-tax returns on capital and high growth, whereas the skilled prefer an anti-Rawlsian policy with less education, lower growth, and more wage inequality. In contrast, a strictly utilitarian government chooses more education and less inequality than the Rawlsian. Thus, the unskilled prefer a more efficient and more equitable outcome than the skilled, and a strictly utilitarian policy may be more egalitarian than a Rawlsian policy.

Suggested Citation

  • Güther Rehme, 2002. "Education Policies, Economic Growth and Wage Inequality," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(4), pages 479-503, December.
  • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(2002/200312)59:4_479:epegaw_2.0.tx_2-u
    as

    Download full text from publisher

    File URL: https://www.mohrsiebeck.com/en/article/education-policies-economic-growth-and-wage-inequality-1016280015221032500810
    Download Restriction: Fulltext access is included for subscribers to the printed version.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Toshiki Tamai, 2015. "Redistributive taxation, wealth distribution, and economic growth," Journal of Economics, Springer, vol. 115(2), pages 133-152, June.
    2. Zilun Zhi & Fangyi Zhao, 2021. "Route study on patterns of poverty alleviation through vocational education under the background of rural vitalization," Poverty & Public Policy, John Wiley & Sons, vol. 13(1), pages 69-92, March.
    3. Günther Rehme, 2008. "Roemer, J. E.: Democracy, Education, and Equality," Journal of Economics, Springer, vol. 93(1), pages 95-100, February.

    More about this item

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • I2 - Health, Education, and Welfare - - Education
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(2002/200312)59:4_479:epegaw_2.0.tx_2-u. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Wolpert (email available below). General contact details of provider: https://www.mohrsiebeck.com/fa .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.