NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Schooling, Inequality, and the Impact of Government

Eric A. Hanushek, Julie A. Somers

NBER Working Paper No. 7450
Issued in December 1999
NBER Program(s):   CH   LS   PE

Analyses of income inequality have identified the importance of increased demand for worker skills, but characterizations of worker skills by the amount of schooling attained do not capture important aspects of the widening income distribution and of the stagnating relative wages of black workers. This paper is motivated by the possibility that schooling quality is an important component of the changing income distribution. The central analysis focuses on how governmental schooling policies particularly those related to the level and distribution of school spending affect the distribution of worker quality and of income. The substantial differences in spending across states are not significantly related to the variations in achievement growth across states. Further, the three decade old movement toward reducing the variation in school spending within states appears to have done nothing to reduce subsequent income variations of workers. Thus, the direct government policies toward school spending, as carried out in the past, have not ameliorated inequalities in incomes.

download in pdf format
   (97 K)

email paper

A non-technical summary of this paper is available in the May 2000 NBER digest.  You can sign up to receive the NBER Digest by email.

This paper is available as PDF (97 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7450

Published: Welch, Finis (ed.) The Causes and Consequences of Increasing Inequality. Chicago: University of Chicago Press, 2001

Users who downloaded this paper also downloaded these:
Alesina, Danninger, and Rostagno w7387 Redistribution Through Public Employment: The Case of Italy
Acemoglu and Angrist w7444 How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws
Johnson and Shleifer w7447 Coase v. the Coasians
Levitt and Porter w7210 Sample Selection in the Estimation of Air Bag and Seat Belt Effectiveness
Brown w7191 Private Pensions, Mortality Risk, and the Decision to Annuitize
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us