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Within-the-Family Education and its Impact on Equality

  • Nordblom, Katarina

    (Department of Economics)

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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File URL: http://www.nek.uu.se/pdf/2001wp6.pdf
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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2001:6.

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Length: 43 pages
Date of creation: 15 Feb 2001
Date of revision:
Publication status: Published in Journal of Public Economics, 2003, pages 1943-1965.
Handle: RePEc:hhs:uunewp:2001_006
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-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. 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.
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  3. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  4. Hallberg, Daniel & Klevmarken, Anders, 2001. "Time for Children, a Study of Parents’ Time Allocation," Working Paper Series 2001:21, Uppsala University, Department of Economics.
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  6. 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.
  7. Anders Forslund & Alan B. Krueger, 1997. "An Evaluation of the Swedish Active Labor Market Policy: New and Received Wisdom," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 267-298 National Bureau of Economic Research, Inc.
  8. 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.
  9. 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.
  10. James J. Heckman, 1999. "Policies to Foster Human Capital," NBER Working Papers 7288, National Bureau of Economic Research, Inc.
  11. 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.
  12. 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).
  13. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  14. Jere R. Behrman & Andrew D. Foster & Mark R. Rosenzweig & Prem Vashishtha, 1999. "Women's Schooling, Home Teaching, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 682-714, August.
  15. 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.
  16. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
  17. Glomm, G. & Kaganovich, M., 1999. "Income Distribution Effects of Public Education and Social Security in a Growing Economy," Papers 9901a, Michigan State - Econometrics and Economic Theory.
  18. Becker, Gary S & Murphy, Kevin M & Tamura, Robert, 1990. "Human Capital, Fertility, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S12-37, October.
  19. CREMER, Helmuth & KESSLER, Denis & PESTIEAU, Pierre, . "Intergenerational transfers within the family," CORE Discussion Papers RP -970, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  20. Becker, Gary S & Murphy, Kevin M, 1988. "The Family and the State," Journal of Law and Economics, University of Chicago Press, vol. 31(1), pages 1-18, April.
  21. 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.
  22. Rangazas, Peter, 1991. "Human capital investment in wealth-constrained families with two-sided altruism," Economics Letters, Elsevier, vol. 35(2), pages 137-141, February.
  23. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  24. 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.
  25. 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.
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