NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Education and the Growth-Equity Trade-Off

Eric A. Hanushek

Chapter in NBER book Education, Skills, and Technical Change: Implications for Future U.S. GDP Growth (2019), Charles R. Hulten and Valerie A. Ramey, editors (p. 293 - 312)
Conference held October 16-17, 2015
Published in December 2018 by University of Chicago Press
© 2019 by the National Bureau of Economic Research
in NBER Book Series Studies in Income and Wealth

Simon Kuznets originally suggested that development and economic inequality were directly related, leading to a large subsequent literature but one that is largely devoid of policy considerations. This chapter marries that discussion with recent analyses of how both individual incomes and long run economic growth are related to human capital as measured by cognitive skills. There is now substantial evidence that cognitive skills resulting from both schools and other factors such as families and health explain substantial portions of individual income differences across countries and are key to understanding differences in national growth rates. In that light, major educational policies that increase the level of skills lead to economic development, and among those policies ones that reduce skill variation will tend also to reduce economic inequality. For example, early childhood policies aimed at disadvantaged youth will tend to be both growth enhancing and inequality reducing. Similarly, life long learning programs aimed at individuals with lower current skills will be inequality reducing. On the other hand, programs like increased vocational education will tend to leave individuals with depreciated skills when the economy grows rapidly and will thus imply increased inequality.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from Amazon.com

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded* these:
Hanushek and Rivkin Does Public School Competition Affect Teacher Quality?
Abel and Deitz Underemployment in the Early Careers of College Graduates following the Great Recession
Hanushek Rationalizing School Spending: Efficiency, Externalities, and Equity, and Their Connection to Rising Costs
Hulten and Ramey Introduction to "Education, Skills, and Technical Change: Implications for Future U.S. GDP Growth"
Hulten The Importance of Education and Skill Development for Economic Growth in the Information Era
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

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

Contact Us