This is a theoretical study of human-capital formation, where parental, as well as public investments are essential. Policy influence rich and poor parents differently when they make educational decisions. Rich parents allocate resources efficiently between physical bequests and educational investments, while poor parents only afford investments in children's human capital. Therefore educational equality between rich and poor children is not necessarily promoted by further investments in public schooling. However, a simple PAYGO-system could yield efficient allocation also for poor children.
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Paper provided by EconWPA in its series Public Economics with number
0105004.
Length: 43 pages Date of creation: 16 May 2001 Date of revision: Handle: RePEc:wpa:wuwppe:0105004
Note: Type of Document - pdf; prepared on PC; pages: 43; figures: included. We never published this piece and now we would like to reduce our mailing and xerox cost by posting it. Contact details of provider: Web page: http://129.3.20.41
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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
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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