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What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth

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  • Ziesemer, Thomas

    ()
    (UNU-MERIT, and Maastricht University)

Abstract

We are interested in the relation between Gini coefficients of education, educational variables, and growth. We specify a system of 14 difference equations with lagged dependent variables in education variables, as well as a growth regression, auxiliary equations for savings and investment ratios, and the growth of the labour force and estimate all of them simultaneously. Having a closed system of 18 equations we run simulations, which show that for the panel average enrolment in tertiary education will go beyond 90%, and therefore drive transitional growth rates and average years of schooling to high levels and reduce inequality over time. This will be achieved by reductions in gender gaps, higher enrolment rates, and lower dropout rates, lower pupil-teacher ratios and higher public expenditure on education. There are no simple one-way causalities. Policies enhancing savings ratios and enrolment in tertiary education have the largest effects through the whole system.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 053.

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Date of creation: 2011
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Handle: RePEc:unm:unumer:2011053

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Keywords: Gini coefficients; education; growth; simultaneous equation system;

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References

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Citations

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Cited by:
  1. Ziesemer, Thomas, 2012. "Worker remittances and government behaviour in the receiving countries," MERIT Working Papers 065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Meijers, Huub, 2012. "Does the internet generate economic growth, international trade, or both?," MERIT Working Papers 050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Thomas H.W. ZIESEMER, 2012. "Worker remittances and government behaviour in the receiving countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 37-59, December.
  4. Ziesemer, Thomas, 2012. "The impact of development aid on education and health: Survey and new evidence from dynamic models," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Meijers, Huub, 2012. "Does the internet generate economic growth, international trade, or both?," MERIT Working Papers 050, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Ziesemer, Thomas, 2012. "The impact of development aid on education and health: Survey and new evidence from dynamic models," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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