Marisa Hidalgo-Hidalgo () (Department of Economics, Universidad Pablo de Olavide) Iñigo Iturbe-Ormaetxe () (Department of Economics, Universidad de Alicante)
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This paper analyzes public intervention in education, taking into account the existence of two educational levels: basic education and college education. The government decides per capita expenditure at each level and the subsidy for college education. We explore the effect of transferring money from one level to the other on equity and efficiency. We find that there is always a policy reform that satisfies both the objectives of equity and efficiency, where efficiency refers to average productivity of college graduates. For developed countries, this policy consists of transferring resources from college education to basic education.
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Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number
08.11.
Find related papers by JEL classification: H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education I28 - Health, Education, and Welfare - - Education - - - Government Policy 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.:
Carneiro, Pedro & Heckman, James J., 2003.
"Human Capital Policy,"
IZA Discussion Papers
821, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
James Heckman & Pedro Carneiro, 2003.
"Human Capital Policy,"
NBER Working Papers
9495, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)