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Imagining Education: Educational Policy and the Labor Earnings Distribution

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  • Diego Amador

Abstract

This paper simulates, within a partial equilibrium framework, the scenarios resulting form the implementation of several educational policies. Then, policies are compared according to their hypothetical results in terms of labor earnings inequality, as measured by the Gini coefficient. Results suggest that educational policies which attempt to guarantee medium qualification produce the lowest inequality even if dispersion in schooling years is high. Policies which attempt to raise tertiary education coverage but do not raise high school coverage as well, lead to rising inequality.

Suggested Citation

  • Diego Amador, 2008. "Imagining Education: Educational Policy and the Labor Earnings Distribution," Documentos CEDE 5147, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:005147
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    File URL: http://economia.uniandes.edu.co/publicaciones/dcede2008-22.pdf
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    References listed on IDEAS

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    2. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
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    4. Kevin M. Murphy & W. Craig Riddell & Paul M. Romer, 1998. "Wages, Skills, and Technology in the United States and Canada," NBER Working Papers 6638, National Bureau of Economic Research, Inc.
    5. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2006. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 7, pages 307-458, Elsevier.
    6. Keane, Michael P & Wolpin, Kenneth I, 1997. "The Career Decisions of Young Men," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 473-522, June.
    7. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mauricio García Villegas & Laura Quiroz López, 2011. "Apartheid educativo. Educación, desigualdad e inmovilidad social en Bogotá," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 13(25), pages 137-162, July-Dece.
    2. Iván Bornacelly, 2013. "Educación técnica y tecnológica para la reducción de la desigualdad salarial y la pobreza," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, June.

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    More about this item

    Keywords

    Educational policy; economic inequality; schooling;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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