TY  - JOUR
AU  - Fernandez,Raquel
AU  - Rogerson,Richard
TI  - Human Capital Accumulation and Income Distribution
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3994
PY  - 1992
Y2  - February 1992
UR  - http://www.nber.org/papers/w3994
L1  - http://www.nber.org/papers/w3994.pdf
N1  - Author contact info:
Raquel Fernández
Department of Economics
New York University
19 West 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8908
Fax: 212/995-4186
E-Mail: raquel.fernandez@nyu.edu

Richard Rogerson
Woodrow Wilson School of
Public and International Affairs
323 Bendheim Hall
Princeton University
Princeton, NJ 08544
Tel: 609-258-4839
Fax: 609-258-5349
E-Mail: rdr@princeton.edu
AB  - The non-existence of credit markets implies that initial income is a determinant of who actually obtains an education. We consider the outcome of a process in which income is taxed to provide subsidies for education. and taxes are chosen by majority voting. We characterize the outcome as a function of both the level and the distribution of income in the economy. In particular we derive conditions under which middle income individuals ally themselves with upper income individuals at the expense of lower income individuals, and vice versa. The analysis determines the relationship between human capital accumulation and distribution of income.
ER  -