Social Background, Education, and Inequality

19 Pages Posted: 22 May 2019

See all articles by Torben M. Andersen

Torben M. Andersen

University of Aarhus - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2019

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 Classification: D3, I2, H2, H4

Suggested Citation

Andersen, Torben M., Social Background, Education, and Inequality (July 2019). Economic Inquiry, Vol. 57, Issue 3, pp. 1441-1459, 2019, Available at SSRN: https://ssrn.com/abstract=3392582 or http://dx.doi.org/10.1111/ecin.12778

Torben M. Andersen (Contact Author)

University of Aarhus - Department of Economics ( email )

University Park
Building 322
DK-8000 Aarhus C
Denmark
+45 8 942 1609 (Phone)
+45 8 613 6334 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
221
PlumX Metrics