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A Classical Model of Education, Growth and Distribution

Author

Listed:
  • Amitava Krishna Dutt

    (University of Notre Dame, and FLACSO)

  • Roberto Veneziani

    (Queen Mary University of London)

Abstract

We develop a classical macroeconomic model to examine the growth and distributional consequences of education. Contrary to the received wisdom, we show that human capital accumulation is not necessarily growth-inducing and inequality-reducing. Expansive education policies may foster growth and reduce earning inequalities between workers, but only by transferring income from workers to capitalists. Further, the overall effect of an increase in education depends on the actual characteristics of the educational system and on the nature of labor market relations. We argue that the model can shed light on some recent stylized facts on growth, distribution and education for the US.

Suggested Citation

  • Amitava Krishna Dutt & Roberto Veneziani, 2017. "A Classical Model of Education, Growth and Distribution," Working Papers 815, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:815
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    File URL: https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/2017/items/wp815.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gilberto Tadeu Lima & Laura Barbosa de Carvalho & Gustavo Pereira Serra, 2024. "Human Capital Accumulation and Output Growth in Demand-led Macrodynamics," Working Papers, Department of Economics 2024_23, University of São Paulo (FEA-USP), revised 28 Aug 2024.
    2. Chu, Angus C. & Kou, Zonglai & Wang, Xilin, 2023. "Class struggle in a Schumpeterian economy," China Economic Review, Elsevier, vol. 82(C).
    3. Gogol Mitra Thakur, 2023. "Modern services led growth and development in a structuralist dual economy: Long‐run implications of skilled labor constraint," Metroeconomica, Wiley Blackwell, vol. 74(4), pages 748-776, November.
    4. Gustavo Pereira Serra, 2024. "(Trying to) Catch Up with the Higher-Skilled Joneses: Student loans in a segmented educational market from a Post-Keynesian perspective," Working Papers 2412, New School for Social Research, Department of Economics.
    5. Marco Stamegna, 2024. "Wage inequality and induced innovation in a classical-Marxian growth model," Journal of Evolutionary Economics, Springer, vol. 34(1), pages 127-168, January.
    6. Sasaki, Hiroaki, 2024. "The Paradox of Technological Progress, Growth, Distribution, and Employment in a Demand-led Framework," MPRA Paper 121694, University Library of Munich, Germany.
    7. Stamegna, Marco, 2022. "Wage inequality and induced innovation in a classical-Marxian growth model," MPRA Paper 113805, University Library of Munich, Germany.

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    More about this item

    Keywords

    Education; Growth; Distribution;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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