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Optimal public education policy in a two sector model

  • Sano, Koichiro
  • Tomoda, Yasunobu
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    Proposing a simple two sector model with occupational choice, this paper analyzes the relationship between optimal public education policy and industrial structure. Workers are employed based on their skills and education policy influences the distribution of human capital. Thus, the industrial structure determines whether an elite education policy or an egalitarian education policy is desirable. In particular, this paper indicates how the productivities of each sector and market sizes affect optimal public education policy.

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    File URL: http://www.sciencedirect.com/science/article/B6VB1-5086GJK-1/2/ffaa367ba3a31e15afbce54f32acc98d
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    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 27 (2010)
    Issue (Month): 5 (September)
    Pages: 991-995

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    Handle: RePEc:eee:ecmode:v:27:y:2010:i:5:p:991-995
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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    1. Bruno, Michael, 1976. "Equality, complementarity and the incidence of public expenditures," Journal of Public Economics, Elsevier, vol. 6(4), pages 395-407, November.
    2. Hanushek, Eric A. & Leung, Charles Ka Yui & Yilmaz, Kuzey, 2003. "Redistribution through education and other transfer mechanisms," Journal of Monetary Economics, Elsevier, vol. 50(8), pages 1719-1750, November.
    3. De Fraja, Gianni, 1998. "The Design of Optimal Education Policies," CEPR Discussion Papers 1792, C.E.P.R. Discussion Papers.
    4. Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005. "Interpreting the Evidence on Life Cycle Skill Formation," NBER Working Papers 11331, National Bureau of Economic Research, Inc.
    5. Darío Maldonado, 2008. "Education policies and optimal taxation," International Tax and Public Finance, Springer, vol. 15(2), pages 131-143, April.
    6. Saint-Paul, Gilles, 2004. "Are intellectual property rights unfair?," Labour Economics, Elsevier, vol. 11(1), pages 129-144, February.
    7. Cremer, Helmuth & Pestieau, Pierre, 2004. "Intergenerational Transfer of Human Capital and Optimal Education Policy," CEPR Discussion Papers 4201, C.E.P.R. Discussion Papers.
    8. Yeaple, Stephen Ross, 2005. "A simple model of firm heterogeneity, international trade, and wages," Journal of International Economics, Elsevier, vol. 65(1), pages 1-20, January.
    9. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
    10. Ulph, David, 1977. "On the optimal distribution of income and educational expenditure," Journal of Public Economics, Elsevier, vol. 8(3), pages 341-356, December.
    11. Lloyd-Ellis, Huw, 2000. "Public Education, Occupational Choice, and the Growth-Inequality Relationship," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 171-201, February.
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