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Social Background, Education, And Inequality

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  • Torben M. Andersen

Abstract

The role parents' education plays for the educational achievements of children is a source of unequal opportunities. Through this channel the number of educated affects the options of future cohorts, creating a social multiplier effect making improvements in education self‐reinforcing. Policies to compensate for inequalities of opportunities—public education or transfers—have very different implications. Transfers not only reduce inequality on impact but also reduce social mobility, while public education—even if a perfect substitute to private education—works in the opposite direction. Social impediments to education are similar to a market imperfection, and publicly provided education may lead to a Pareto improvement. (JEL D3, I2, H2, H4)

Suggested Citation

  • Torben M. Andersen, 2019. "Social Background, Education, And Inequality," Economic Inquiry, Western Economic Association International, vol. 57(3), pages 1441-1459, July.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:3:p:1441-1459
    DOI: 10.1111/ecin.12778
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    Cited by:

    1. Anna Hovhannisyan & Ramon A. Castillo-Ponce & Rolando I. Valdez, 2019. "The Determinants of Income Inequality: The Role of Education," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 66(4), pages 451-464, December.

    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I2 - Health, Education, and Welfare - - Education
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods

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