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On the role of job assignment in a comparison of education systems

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  • Katsuya Takii
  • Ryuichi Tanaka

Abstract

This paper re‐examines how differences in systems for financing education influence GDP by highlighting a neglected function of education policy: it affects the magnitude of gains from job assignment. When more productive jobs demand more skill, privately financed education can increase productivity gains from matching between jobs and skill by increasing the availability of highly educated people. This differs from the standard argument that publicly financed education increases the total amount of human capital by equalizing educational opportunities. It is shown that if job opportunities have large variations in productivity, education policy may face a serious efficiency–equity trade‐off. Ce mémoire réexamine comment des différences dans le financement des systèmes d’éducation influencent le PIB en mettant en lumière une fonction négligée de la politique éducationnelle – la magnitude des gains qui découlent de l’assignation des emplois. Quand des emplois plus productifs réclament des habiletés additionnelles, un système d’éducation financé par le privé peut accroître les gains de productivité dérivés de l’arrimage des emplois et des habiletés en accroissant le nombre de personnes hautement qualifiées. Voilà qui diffère de l’argument conventionnel que l’éducation financée par le secteur public accroît le capital humain total en égalisant les occasions de s’instruire. On montre que si les emplois sont associés à de fortes variations dans la productivité, la politique éducationnelle peut fort bien être confrontée à une sérieuse relation d’équivalence (trade‐off) entre efficacité et équité.

Suggested Citation

  • Katsuya Takii & Ryuichi Tanaka, 2013. "On the role of job assignment in a comparison of education systems," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(1), pages 180-207, February.
    • Handle: RePEc:wly:canjec:v:46:y:2013:i:1:p:180-207
    DOI: 10.1111/caje.12009
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    Cited by:

    1. Tanaka, Ryuichi & Farre, Lidia & Ortega, Francesc, 2018. "Immigration, assimilation, and the future of public education," European Journal of Political Economy, Elsevier, vol. 52(C), pages 141-165.
    2. Katsuya Takii & Ryuichi Tanaka, 2013. "On the role of job assignment in a comparison of education systems," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 180-207, February.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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