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Composition of Public Education Expenditures and Human Capital Accumulation

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Listed:
  • Katsuyuki Naito

    (Institute of Economic Research, Kyoto University)

  • Keigo Nishida

    (Graduate School of Economics, Kyoto University)

Abstract

This paper provides a simple theory to study how the allocation of public funds between primary and higher education affects human cap- ital accumulation. The allocation is endogenously determined through majority voting. Public funding for higher education is not supported when a majority is poor. In some cases, higher education starts to be realized as a majority of individuals accumulate enough human capital through primary edu- cation. Although the emergence of higher education can accelerate aggregate human capital accumulation, it widens income inequality because the very poor are excluded from higher ed- ucation and the declined budget share for primary education decreases its quality.

Suggested Citation

  • Katsuyuki Naito & Keigo Nishida, 2012. "Composition of Public Education Expenditures and Human Capital Accumulation," KIER Working Papers 826, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:826
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Education; Economic Development; Income Inequality; Majority Voting;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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