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Within-the-family education and its impact on equality

  • Katarina Nordblom

    (Uppsala University)

This is a theoretical study of human-capital formation, 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. However, a simple PAYGO-system could yield efficient allocation also for poor children.

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Paper provided by EconWPA in its series Public Economics with number 0105004.

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Length: 43 pages
Date of creation: 16 May 2001
Date of revision:
Handle: RePEc:wpa:wuwppe:0105004
Note: Type of Document - pdf; prepared on PC; pages: 43; figures: included. We never published this piece and now we would like to reduce our mailing and xerox cost by posting it.
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