Specialization in Higher Education and Economic Growth
AbstractThis paper presents a new market failure in the decision on educational type in higher education. Individuals choose types of education with different degrees of specialization. Labor market transformation makes some individuals opt for a non-specialized education type that broadens the future career possibilities in an uncertain labor market. However, the growth rate in the economy is assumed to positively depend on the amount of specialized workers that get a job within their specialized field. Imposing a tax and transfer scheme in favor of specialized education types may correct for the market failure and Pareto improve the economy if the transfer attracts a sufficiently large amount of new students to a specialized education type and if their effect on the growth rate is substantial.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2007:13.
Length: 22 pages
Date of creation: 27 Jun 2007
Date of revision:
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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
Web page: http://www.ne.su.se/
More information through EDIRC
Educational Choice; Growth;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-30 (All new papers)
- NEP-DEV-2007-06-30 (Development)
- NEP-EDU-2007-06-30 (Education)
- NEP-HRM-2007-06-30 (Human Capital & Human Resource Management)
- NEP-LAB-2007-06-30 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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