Working Paper Series, Department of Economics, Uppsala University
No 2001:6:
Within-the-Family Education and its Impact on Equality
Katarina Nordblom
Abstract: This is a theoretical study of human-capital accumulation,
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. Moreover, I show that educational
investments in low-skilled parents may have substantial spill-over effects
on their children. Tax policy may also be used to influence human-capital
accumulation, and I show that tax policy may have unexpected effects on the
educational gap between rich and poor children.
Keywords: Human capital; Public education; Bequest; Altruism; (follow links to similar papers)
JEL-Codes: H31; H52; I21; J24; (follow links to similar papers)
43 pages, February 15, 2001
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Nordblom, Katarina, (2003), 'Is increased public schooling really a policy for equality? The role of within-the-family education', Journal of Public Economics, Vol. 87, pages 1943-1965
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