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A Classical-Marxian Model Of Education, Growth And Distribution

Author

Listed:
  • Amitava Krishna Dutt

    (Universty of Notre Dame)

  • Roberto Veneziani

    (Queen Mary University of London)

Abstract

This paper develops a classical-Marxian macroeconomic model to examine the growth and distributional consequences of education. First, the role of education in skill formation is considered and it is shown that an expansion in education will promote growth and have beneficial distributional effects within the working class, but it will redistribute income from workers to capitalists. Second, the model is extended analyze the broader political economic consequences of education on class relations and class conflict. The model suggests the importance of a progressive type of education rather than one which weakens the power workers, for it allows for equitable growth outcomes which improve the position of workers as a whole and reduces inequality within workers. Finally, the model shows that education leads to multiple equilibria and it stresses the importance of providing suitable incentives to workers for taking advantage of greater education access, without which the economy can be caught in a low-skill trap. JEL Categories: E2, E11, O41, J31.

Suggested Citation

  • Amitava Krishna Dutt & Roberto Veneziani, 2010. "A Classical-Marxian Model Of Education, Growth And Distribution," UMASS Amherst Economics Working Papers 2010-10, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2010-10
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    File URL: http://www.umass.edu/economics/publications/2010-10.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    education; growth; distribution.;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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