Empirical results show that children from high income households achieve higher levels of education and are more likely to be enrolled in post compulsory school. Theoretical findings fail to answer clearly whether greater public investment in the higher education system effectively decreases the inequality between the educational attainment of rich and poor children. We show that if the child receives a monetary transfer from his parents and allocates it between private consumption and investment in private additional education, then a further public investment decreases the educational gap. This result holds under the assumptions of both sub-stitutability and complementarity between private and public education.
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number
06/3.
Length: Date of creation: Jan 2006 Date of revision: Handle: RePEc:lec:leecon:06/3
Contact details of provider: Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK Phone: +44 (0)116 252 2887 Fax: +44 (0)116 252 2908 Email: Web page: http://www.le.ac.uk/economics/
Find related papers by JEL classification: H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education I21 - Health, Education, and Welfare - - Education - - - Analysis of Education J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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References listed on IDEAS 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.:
Gary S. Becker & Nigel Tomes, 1994.
"X. Human Capital and the Rise and Fall of Families,"
NBER Chapters,
in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298
National Bureau of Economic Research, Inc.
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