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The Distributional Bias of Public Education: Causes and Consequences

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Author Info
Mark Gradstein
Era Dabla-Norris
Abstract

While public education is often intended to be progressive in its effects on income distribution, in reality its incidence is often skewed toward the rich. This paper argues that the extent of this bias is directly related to institutional weaknesses in governance. We present a simple dynamic model where weak governing institutions allow the rich to be more effective in appropriating a larger share of public education spending thereby preventing inequality reduction. The empirical part provides tentative support for this view, showing that the progressiveness of public education spending is related to the strength of governance.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 04/214.

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Length: 28 pages
Date of creation: 30 Nov 2004
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Handle: RePEc:imf:imfwpa:04/214

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Keywords: Education ; Governance ;

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  16. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April. [Downloadable!] (restricted)
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  17. Amparo Castello & Rafael Domenech, 2002. "Human Capital Inequality and Economic Growth: Some New Evidence," Economic Journal, Royal Economic Society, vol. 112(478), pages C187-C200, March. [Downloadable!] (restricted)
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  19. de la Croix, David & Doepke, Matthias, 2004. "Public versus private education when differential fertility matters," Journal of Development Economics, Elsevier, vol. 73(2), pages 607-629, April. [Downloadable!] (restricted)
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  20. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
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  1. Uwe Sunde, 2006. "Wirtschaftliche Entwicklung und Demokratie: Ist Demokratie ein Wohlstandsmotor oder ein Wohlstandsprodukt?," IZA Discussion Papers 2244, Institute for the Study of Labor (IZA). [Downloadable!]
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