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Education Choice, Neoclassical Growth and Class Structure

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  • Buly A Cardak

    (Department of Economics and Finance, La Trobe University)

Abstract

The evolution of income distribution is studied in a dynamic model of education choice. In this model, both public and private education are available. Public education is financed using a tax rate determined by majority voting. The analysis focuses on neoclassical growth in order to ensure tractability in identifying a steady state. The steady state income distribution is found to be bimodal. Public education offers higher growth to the poor in the transition to the steady state, however public education students converge to the lower mode of the income distribution. Under some conditions, universal public education offers steads state human capital superior to that available to any student in the mixed education model considered, while universal private education unconditionally offers steady state human capital superior to that of the mixed model.

Suggested Citation

  • Buly A Cardak, 2001. "Education Choice, Neoclassical Growth and Class Structure," Working Papers 2001.07, School of Economics, La Trobe University.
    • Handle: RePEc:ltr:wpaper:2001.07
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    References listed on IDEAS

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    Cited by:

    1. Yuki Uchida & Tetsuo Ono, 2020. "Inequality and education choice," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 980-1018, August.
    2. John Creedy, 2006. "Education Vouchers: Means Testing Versus Uniformity," Department of Economics - Working Papers Series 978, The University of Melbourne.
    3. Nikos Benos, 2005. "Education Systems, Growth and Welfare," University of Cyprus Working Papers in Economics 5-2005, University of Cyprus Department of Economics.
    4. Nikos Benos, 2010. "Education policy, growth and welfare," Education Economics, Taylor & Francis Journals, vol. 18(1), pages 33-47.
    5. Salwa Trabelsi, 2017. "Mixed, Private And Public Educational Financing Regimes, Economic Growth And Income Inequality," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(212), pages 43-62, January -.
    6. Growiec, Katarzyna & Growiec, Jakub, 2014. "Social Capital, Trust, And Multiple Equilibria In Economic Performance," Macroeconomic Dynamics, Cambridge University Press, vol. 18(2), pages 282-315, March.
    7. Growiec, Katarzyna & Growiec, Jakub, 2014. "Social Capital, Trust, And Multiple Equilibria In Economic Performance," Macroeconomic Dynamics, Cambridge University Press, vol. 18(2), pages 282-315, March.
    8. Buly A. Cardak, 2004. "Education Choice, Endogenous Growth and Income Distribution," Economica, London School of Economics and Political Science, vol. 71, pages 57-81, February.

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    More about this item

    Keywords

    Education Choice; Growth; Income Distribution; Public and Private Education EDIRC Provider-Institution: RePEc:edi:smlatau;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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