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Poverty Alleviation and Correction of Income Disparity Through Fiscal Spending on Education

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  • Yui Nakamura

Abstract

As demonstrated by human capital theory, accumulation of human capital through receiving education can increase individual incomes and may enable people to escape from poverty. However, education systems proposed by a utilitarian government exclude some individuals who cannot receive advanced education as a means of alleviating poverty. Moreover, such education systems usually expand income disparity between individuals who receive advanced education and those who do not. This study focuses on a possible situation in which education systems simultaneously enable poverty decline, correct income disparity, and maximize social welfare based on Bentham that is adopted by a utilitarian government. We then clarify a mechanism through which supporting and developing the individual educational environment can increase the quality of basic education and incomes of the poor even if they cannot receive advanced education. 人力资本理论证明, 通过接受教育来积累人力资本, 能增加个人收入, 并可能使人摆脱贫困。然而, 由一个功利政府提出的教育体系将一些个人排除在外, 这些人无法接受高等教育, 以作为减贫的途径。此外, 这类教育体系通常会在那些接受了高等教育和未接受高等教育的个体之间扩大收入差异。 本研究聚集于一个可能的场景, 在该场景中, 基于由功利政府采纳的Bentham模式, 教育体系能同时减少贫困、改善收入差距、并将社会福利最大化。我们随后阐明了一项机制, 通过这项机制, 支持和发展个人教育环境一事能提高基础教育质量, 提高贫困人群收入, 即使后者无法接受高等教育。 Como lo demuestra la teoría del capital humano, la acumulación de capital humano a través de la educación puede aumentar los ingresos individuales y puede permitir a las personas escapar de la pobreza. Sin embargo, los sistemas educativos propuestos por un gobierno utilitario excluyen a algunas personas que no pueden recibir educación avanzada como un medio para aliviar la pobreza. Además, tales sistemas educativos generalmente amplían la disparidad de ingresos entre las personas que reciben educación avanzada y las que no. Este estudio se centra en una posible situación en la que los sistemas educativos permiten simultáneamente la disminución de la pobreza, la corrección de la disparidad de ingresos y la maximización del bienestar social basado en Bentham que es adoptado por un gobierno utilitario. Luego aclaramos un mecanismo a través del cual el apoyo y el desarrollo del entorno educativo individual pueden aumentar la calidad de la educación básica y los ingresos de los pobres, incluso si no pueden recibir educación avanzada.

Suggested Citation

  • Yui Nakamura, 2020. "Poverty Alleviation and Correction of Income Disparity Through Fiscal Spending on Education," Poverty & Public Policy, John Wiley & Sons, vol. 12(1), pages 63-72, March.
    • Handle: RePEc:wly:povpop:v:12:y:2020:i:1:p:63-72
    DOI: 10.1002/pop4.268
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    References listed on IDEAS

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    1. Miguel Fernandes & João S. Andrade & Adelaide Duarte & Marta Simões, 2022. "Inequality and growth in Portugal: A reappraisal for the period 1986–2017," Poverty & Public Policy, John Wiley & Sons, vol. 14(1), pages 25-49, March.

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