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Multistage public education, voting, and income distribution

Author

Listed:
  • Katsuyuki Naito

    () (Asia University)

  • Keigo Nishida

    () (Fukuoka University)

Abstract

Abstract This paper proposes a theory to study the formulation of education policies and human capital accumulation. The government collects income taxes and allocates tax revenue to primary and higher education. The tax rate and the allocation rule are both endogenously determined through majority voting. The tax rate is kept at a low level, and public funding for higher education is not supported unless the majority of individuals have human capital above some threshold. Although public support for higher education promotes aggregate human capital accumulation, it may create long-run income inequality because the poor are excluded from higher education.

Suggested Citation

  • Katsuyuki Naito & Keigo Nishida, 2017. "Multistage public education, voting, and income distribution," Journal of Economics, Springer, vol. 120(1), pages 65-78, January.
  • Handle: RePEc:kap:jeczfn:v:120:y:2017:i:1:d:10.1007_s00712-016-0513-5
    DOI: 10.1007/s00712-016-0513-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Majority voting; Public education; Multistage education; Human capital accumulation; Income distribution;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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