The effects of compulsory schooling on growth, income distribution and welfare
Z Eckstein, I Zilcha - Journal of Public Economics, 1994 - Elsevier
Z Eckstein, I Zilcha
Journal of Public Economics, 1994•ElsevierIn this paper we consider an OLG model with productive capital and human capital affecting
the quality of labor. In each generation parents invest in their children's education but
disregard its external effect on the aggregate production function. Government intervention
in providing compulsory schooling increases economic growth (along the equilibrium path),
while the intragenerational income distribution becomes more equal. Also, in the long run,
the majority of individuals in each generation are better off due to compulsory schooling.
the quality of labor. In each generation parents invest in their children's education but
disregard its external effect on the aggregate production function. Government intervention
in providing compulsory schooling increases economic growth (along the equilibrium path),
while the intragenerational income distribution becomes more equal. Also, in the long run,
the majority of individuals in each generation are better off due to compulsory schooling.
Abstract
In this paper we consider an OLG model with productive capital and human capital affecting the quality of labor. In each generation parents invest in their children's education but disregard its external effect on the aggregate production function. Government intervention in providing compulsory schooling increases economic growth (along the equilibrium path), while the intragenerational income distribution becomes more equal. Also, in the long run, the majority of individuals in each generation are better off due to compulsory schooling.
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