Education and Income Inequality: The Role of a Social Protection System
AbstractIn this paper we aim to understand how unemployment benefits may affect investment in education when the latter is characterized by uncertain returns. This is done in an overlapping generations model in which endogenous growth is introduced through human capital accumulation. We develop a numerical example of the model in order to reproduce some key differences between the European versus the North American economy; differences that, according to this model, result from the different degree of social protection characterizing both economies.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 1999017.
Date of creation: 01 May 1999
Date of revision:
uncertainty; education; income inequality;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- I29 - Health, Education, and Welfare - - Education - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-02-10 (All new papers)
- NEP-LAB-2002-02-10 (Labour Economics)
- NEP-PBE-2002-02-10 (Public Economics)
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