Human Capital Accumulation and Income Distribution / Raquel Fernandez, Richard Rogerson.

Format:

Book

Author/Creator:

Fernandez, Raquel.

Contributor:

National Bureau of Economic Research.

Rogerson, Richard.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3994.

NBER working paper series no. w3994

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1992.

Summary:

The non-existence of credit markets implies that initial income is a determinant of who actually obtains an education. We consider the outcome of a process in which income is taxed to provide subsidies for education. and taxes are chosen by majority voting. We characterize the outcome as a function of both the level and the distribution of income in the economy. In particular we derive conditions under which middle income individuals ally themselves with upper income individuals at the expense of lower income individuals, and vice versa. The analysis determines the relationship between human capital accumulation and distribution of income.

Notes:

Print version record

February 1992.