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Within-the-Family Education and Its Impact on Equality

  • Nordblom, K.

This is a theoretical study of human-capital accumulation, where parental, as well as public investments are essential. Policy influence rich and poor parents differently when they make educational decisions. Rich parents allocate resources efficiently between physical bequests and educational investments, while poor parents only afford investments in children's human capital. Therefore, educational equality between rich and poor children is not necessarily promoted by further investments in public schooling. Moreover, I show that educational investments in low-skilled parents may have substantial spill-over effects on their children. Tax policy may also be used to influence human-capital accumulation, and I show that tax policy may have unexpected effects on the educational gap between rich and poor children.

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Paper provided by Uppsala - Working Paper Series in its series Papers with number 2001:06.

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Length: 43 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:uppaal:2001:06
Contact details of provider: Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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  1. Glomm, G. & Kaganovich, M., 1999. "Income Distribution Effects of Public Education and Social Security in a Growing Economy," Papers 9901, Michigan State - Econometrics and Economic Theory.
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  8. Meghir, Costas & Palme, Mårten, 1999. "Assessing the Effect of Schooling on Earnings Using a Social Experiment," SSE/EFI Working Paper Series in Economics and Finance 313, Stockholm School of Economics.
  9. Kaganovich, Michael & Zilcha, Itzhak, 1999. "Education, social security, and growth," Journal of Public Economics, Elsevier, vol. 71(2), pages 289-309, February.
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  12. Daniel Hallberg & Anders Klevmarken, 2003. "Time for children: A study of parent's time allocation," Journal of Population Economics, Springer, vol. 16(2), pages 205-226, 05.
  13. Kim, Hong-Kyun, 2001. "Is there a crowding-out effect between school expenditure and mother's child care time?," Economics of Education Review, Elsevier, vol. 20(1), pages 71-80, February.
  14. Rangazas, Peter C, 1996. "Fiscal Policy and Endogenous Growth in a Bequest-Constrained Economy," Oxford Economic Papers, Oxford University Press, vol. 48(1), pages 52-74, January.
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  16. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
  17. Caballe, Jordi, 1995. "Endogenous Growth, Human Capital, and Bequests in a Life-Cycle Model," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 156-81, January.
  18. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  19. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  20. Balestrino, Alessandro, 1997. "Education policy in a non-altruistic model of intergenerational transfers with endogenous fertility," European Journal of Political Economy, Elsevier, vol. 13(1), pages 157-169, February.
  21. Rangazas, Peter, 1991. "Human capital investment in wealth-constrained families with two-sided altruism," Economics Letters, Elsevier, vol. 35(2), pages 137-141, February.
  22. Cremer, Helmuth & Kessler, Denis & Pestieau, Pierre, 1992. "Intergenerational transfers within the family," European Economic Review, Elsevier, vol. 36(1), pages 1-16, January.
  23. Drazen, Allan, 1978. "Government Debt, Human Capital, and Bequests in a Life-Cycle Model," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 505-16, June.
  24. Lindahl, Mikael, 2001. "Home versus School Learning: A New Approach to Estimating the Effect of Class Size on Achievement," IZA Discussion Papers 261, Institute for the Study of Labor (IZA).
  25. Chakrabarti, Subir & Lord, William & Rangazas, Peter, 1993. "Uncertain Altruism and Investment in Children," American Economic Review, American Economic Association, vol. 83(4), pages 994-1002, September.
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