The political economy of education : implications for growth and inequality / Mark Gradstein, Moshe Justman, Volker Meier.

Format:

Book

Author/Creator:

Gradstein, Mark.

Contributor:

Justman, M.

Meier, Volker, 1966-

Series:

CESifo book series

The CESifo book series

Language:

English

Subjects (All):

Education--Economic aspects.

Education.

Education and state.

Educational equalization.

Human capital.

Physical Description:

x, 169 pages : illustrations ; 24 cm.

Place of Publication:

Cambridge, Mass. : MIT Press, [2005]

Summary:

The dominant role played by the state in the financing, regulation, and provision of primary and secondary education reflects the widely held belief that education is necessary for personal and societal well-being. The economic organization of education depends on political as well as market mechanisms to resolve issues that arise because of contrasting views on such matters as income inequality, social mobility, and diversity. This book provides the theoretical framework necessary for understanding the political economy of education-the complex relationship of education, economic growth, and income distribution-and for formulating effective policies to improve the financing and provision of education. The relatively simple models developed illustrate the use of analytical tools for understanding central policy issues.

After offering a historical overview of the development of public education and a review of current econometric evidence on education, growth, and income distribution, the authors lay the theoretical groundwork for the main body of analysis. First they develop a basic static model of how political decisions determine education spending; then they extend this model dynamically. Applying this framework to a comparison of education financing under different regimes, the authors explore fiscal decentralization; individual choice between public and private schooling, including the use of education vouchers to combine public financing of education with private provision; and the social dimension of education-its role in state building, the traditional "melting pot" that promotes cohesion in a culturally diverse society.

Contents:

Economic Models of Education: What Does Education Do? 2

Why Public Education? 4

2 Historical and Institutional Perspectives 11

Historical Evolution of Public Education 11

The Role of the Public Sector in Modern Education 17

Four Education Systems 21

3 Education, Growth, and Distribution: Empirical Evidence 29

Investing in Education 31

The Contribution of Human Capital to Growth 35

Education and Income Distribution 40

4 Political Determination of Education Spending 45

A Basic Model of Private Education 46

Public Schooling 47

Empirical Evidence on Income and Substitution Elasticities 50

Differences in Abilities 51

Comparing Public and Private Education in the Short Run 53

Education and Redistribution 55

Appendix 4.1 Voting Equilibria 59

Appendix 4.2 A Stochastic Model 61

5 Dynamic Models of Education 63

A Dynamic Economy 64

Differences in Abilities 67

Income Dynamics under Public Schooling 68

Public Education and Democracy 72

Appendix 5.1 Dynamics of the Income Distribution 74

Appendix 5.2 Political Dynamics 77

6 Central versus Local Education Finance 79

Demand for Education Quality and Residential Segregation 80

Local and Central Education Funding 83

Dynamic Implications 84

Mixed Modes of Education Financing 86

7 Mixed Regimes of Public and Private Schooling 95

A Basic Model of "Opting Out" of Public Education 98

Religious Preferences 102

Residential Mobility and School Choice 104

The Effect of School Vouchers on Enrollment and Spending 107

8 Education, Social Capital, and the Dynamics of Cohesion 111

Education and the Dynamics of Social Polarization 113

Welfare Implications of Different Schooling Regimes 116

Public Education as a Melting Pot 120

Policy Implications 124

9 Directions for Future Research 129.

Notes:

Includes bibliographical references (pages [147]-161) and index.

ISBN:

0262072564

OCLC:

54960636