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The Distributional Bias of Public Education: Causes and Consequences

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  • Mr. Mark Gradstein
  • Ms. Era Dabla-Norris

Abstract

While public education is often intended to be progressive in its effects on income distribution, in reality its incidence is often skewed toward the rich. This paper argues that the extent of this bias is directly related to institutional weaknesses in governance. We present a simple dynamic model where weak governing institutions allow the rich to be more effective in appropriating a larger share of public education spending thereby preventing inequality reduction. The empirical part provides tentative support for this view, showing that the progressiveness of public education spending is related to the strength of governance.

Suggested Citation

  • Mr. Mark Gradstein & Ms. Era Dabla-Norris, 2004. "The Distributional Bias of Public Education: Causes and Consequences," IMF Working Papers 2004/214, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/214
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    Cited by:

    1. Salwa Trabelsi, 2019. "The governance threshold effect on the relationship between public education financing and income inequality," Economics Bulletin, AccessEcon, vol. 39(2), pages 1057-1075.
    2. Uwe Sunde, 2006. "Wirtschaftliche Entwicklung und Demokratie – Ist Demokratie ein Wohlstandsmotor oder ein Wohlstandsprodukt?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(4), pages 471-499, November.
    3. Xinhua Hui, 2020. "An Empirical Analysis on the Impact of Higher Education on Income Inequality," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(2), pages 1-9.

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    Keywords

    WP; public spending;

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