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Education, mobility and redistribution

Author

Listed:
  • Pestieau, Pierre

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

  • Racionero, Maria

Abstract

Recent evidence suggests that social mobility has declined in many devel- oped countries despite some of them pursuing proactive redistribution policies. In this paper we characterize the optimal mix of income tax and education poli- cies that a government should adopt to maximize a long-term social objective that includes considerations for income redistribution and upward mobility. We show that switching from an elitist to a meritocratic education system, or from a short-term to a long-term vision of social welfare, fosters upward mobility but it can sometimes lead to increased inequality.

Suggested Citation

  • Pestieau, Pierre & Racionero, Maria, 2023. "Education, mobility and redistribution," LIDAM Discussion Papers CORE 2023024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2023024
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    References listed on IDEAS

    as
    1. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 191-208.
    2. Andros Kourtellos & Chih Ming Tan & Steven N. Durlauf, 2022. "The Great Gatsby Curve," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 571-605, August.
    3. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    4. Elena Del Rey & MarÌa del Mar Racionero, 2002. "Optimal educational choice and redistribution when parental education matters," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 435-448, July.
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    Cited by:

    1. Perelman, Sergio & Pestieau, Pierre & Racionero, Maria, 2023. "Social mobility, education and populism," LIDAM Discussion Papers CORE 2023026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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    More about this item

    Keywords

    Social mobility ; education policy ; Great Gatsby curve;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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