The influence of population density on education spread and economic development

We seek to provide a reasonable explanation for the evidence that, while population density determines regional variation in schooling rates, it typically bears no significant relationship with individual income. To this end, we model a spatial economy composed of a traditional region, inhabited by farmers educated in the family, and a modern region populated by industrial workers trained in schools. In theoretical terms, a proportional increase in demographic density at each location leads to an expansion of the school-educated region, although the overall e??ect also depends on the specific productivity associated with each type of technology. In addition, it reveals a non-monotonic relationship between density and individual income, which first decreases and subsequently increases. The temporal evolution of an economy experiencing a proportional rise in population may also be described by an analogy with the spatial model.