The Paradox of Education or the Good Side of Inequality
In this paper, the author argues that one of the mechanisms through which inequality may affect long-run growth is through individuals' education possibilities. The cost of education is, therefore, a crucial variable. The author endogenizes this cost and shows that it will be high relative to average wealth in poor countries and relatively low in rich countries. With two-tailed distributions of wealth, this is going to imply that greater inequality increases growth rates in poor economies, while it decreases them in rich economies. Copyright 1995 by Royal Economic Society.
Volume (Year): 47 (1995)
Issue (Month): 2 (April)
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
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.:
- Perotti, Roberto, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 755-76, October.
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:47:y:1995:i:2:p:265-85. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.