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Egalitarian and elitist education systems as the basis for international differences in wage inequality

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  • Klaus Wälde

    (University of Dresden)

Abstract

This paper investigates one reason why some countries have experienced a strong increase in wage inequality over the last decades while others have not. The explanation is based on the link between the quality of education and induced technological change. A country with qualitatively better-educated skilled workers, relative to unskilled workers, has a higher ratio of human capital to labour than a country where the quality of education is more equal across education levels. These differences lead to different paths of induced technological change across countries, which in turn imply different histories of the distribution of labour income.

Suggested Citation

  • Klaus Wälde, 2002. "Egalitarian and elitist education systems as the basis for international differences in wage inequality," Public Economics 0203004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:0203004
    Note: Type of Document - Tex; prepared on IBM PC; pages: 24 ; figures: included
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    References listed on IDEAS

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    Cited by:

    1. Brezis, Elise S. & Hellier, Joël, 2018. "Social mobility at the top and the higher education system," European Journal of Political Economy, Elsevier, vol. 52(C), pages 36-54.
    2. Thushyanthan Baskaran & Zohal Hessami, 2012. "Public education spending in a globalized world:," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(5), pages 677-707, October.
    3. Thushyanthan Baskaran & Zohal Hessami, 2010. "Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis," Working Paper Series of the Department of Economics, University of Konstanz 2010-03, Department of Economics, University of Konstanz.
    4. Bowman, Kevin James, 2007. "Knowledge stocks by distance to frontier: Linking low education inequality to high growth in developing countries," Journal of Asian Economics, Elsevier, vol. 18(4), pages 613-635, August.
    5. Thushyanthan Baskaran & Zohal Hessami, 2011. "Public Education Spending in a Globalized World: Is there a Shift in Priorities Across Educational Stages?," Working Paper Series of the Department of Economics, University of Konstanz 2011-42, Department of Economics, University of Konstanz.
    6. Klaus Wälde & Pia Weiss, 2004. "International Competition, Slim Firms and Wage Inequality," CESifo Working Paper Series 1254, CESifo.
    7. Kevin James Bowman, 2008. "Endogenous Human Capital Investment And The Interaction Of Frontier And Adoptive Knowledge On Growth And Wage Inequality," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(6), pages 571-592.
    8. Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
    9. Janssen, Simon & Mohrenweiser, Jens, 2015. "The long-lasting effect of technological change on the careers of young workers: Evidence from changes of mandatory training regulations," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112851, Verein für Socialpolitik / German Economic Association.
    10. Di Gioacchino, Debora & Sabani, Laura, 2009. "Education policy and inequality: A political economy approach," European Journal of Political Economy, Elsevier, vol. 25(4), pages 463-478, December.
    11. Elisa S. Brezis & Joel Hellier, 2016. "Social Mobility and Higher-Education Policy," Working Papers 095, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.

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    More about this item

    Keywords

    wage inequality; Quality of education; Elitist and egalitarian education systems; Biased technological change; Distribution of labour income;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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