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Public Schooling, Social Capital and Growth

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  • Mark Gradstein
  • Moshe Justman

Abstract

We consider the contribution of public education to growth through its role in building social capital—instilling common values and norms that lower economic transaction costs and reduce social tensions between different population groups. This is modeled in the context of a political economy framework that focuses on the role of public education in reducing redistributive rent-seeking. Our analysis shows that the social compromises needed to mobilize popular support for public education are more difficult to achieve the deeper are the cultural divisions in society; and that a uniform public school system, when adopted, promotes stronger growth than would a private system.

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  • Mark Gradstein & Moshe Justman, "undated". "Public Schooling, Social Capital and Growth," EPRU Working Paper Series 99-21, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:epruwp:99-21
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    File URL: http://web.econ.ku.dk/epru/files/wp/wp9921.pdf
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    Cited by:

    1. DEL REY, Elena, 2001. "Persistent inequality through schooling: the role of limited school capacity," LIDAM Discussion Papers CORE 2001010, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Bearse, Peter & Glomm, Gerhard & Ravikumar, B., 2000. "On the political economy of means-tested education vouchers," European Economic Review, Elsevier, vol. 44(4-6), pages 904-915, May.
    3. Ramos Parreno, Jose Maria & Sanchez-Losada, Fernando, 2002. "The role of unions in an endogenous growth model with human capital," Journal of Macroeconomics, Elsevier, vol. 24(2), pages 171-192, June.

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