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Education and Income Inequality: The Role of a Social Protection System

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  • Rillaers, Alexandra

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

In this paper we aim to understand how unemployment benefits may affect investment in education when the latter is characterized by uncertain returns. This is done in an overlapping generations model in which endogenous growth is introduced through human capital accumulation. We develop a numerical example of the model in order to reproduce some key differences between the European versus the North American economy; differences that, according to this model, result from the different degree of social protection characterizing both economies.

Suggested Citation

  • Rillaers, Alexandra, 1999. "Education and Income Inequality: The Role of a Social Protection System," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1999017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:1999017
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/9917.pdf
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    References listed on IDEAS

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    6. Dellas, Harris, 1997. "Unemployment insurance benefits and human capital accumulation," European Economic Review, Elsevier, vol. 41(3-5), pages 517-524, April.
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    More about this item

    Keywords

    uncertainty; education; income inequality;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I29 - Health, Education, and Welfare - - Education - - - Other

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