2023-09-28 14:46:10 +00:00
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abstract: 'Purpose This paper aims to understand the differing impacts of wealth
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distribution on human capital accumulation and skilled-unskilled labour
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generation under three educational paradigms as follows: private, public
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and a system of mixed education. Design/methodology/approach The authors
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use an overlapping generations model. Findings The wealth dynamics show
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that both in the private education system and public education system,
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there are two possible outcomes- stagnation and steady growth depending
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on the efficiency of the education system, skill premium and other
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parameters. The choice of the education system through voting is
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discussed. It is found that skilled workers would always vote for
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private education whilst unskilled workers vote for private education if
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public education expenditure of the economy is low. Research
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limitations/implications The study is subject to several limitations.
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This paper considers the rate of interest and wage rate to be
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exogenously given, and thus ignores the general equilibrium effects. The
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authors do not consider the labour-leisure choice. The introduction of
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labour leisure choice in the model would alter many of the results. The
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authors do not consider heterogeneous ability across individuals. The
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analysis of the differential efficiency of the different education
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systems needs further, rigorous research. Also, this paper does not
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consider other occupations such as entrepreneurship and self-employment.
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This paper considers the labour demand function to be perfectly elastic,
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and hence, does not consider any demand constraint. What happens if
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bequests are taxed? What happens if parents are not altruistic? These
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questions may be addressed in future research. Social implications If
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the proportion of tax paying skilled labour is low in any country, pure
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public education may not be able to generate sustained human capital
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growth. For countries with a sufficiently large proportion of skilled
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labour, the public education system would be successful. On the other
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hand, if skill premium is low or the education system is poorly managed
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private education system may fail too. Originality/value Whilst
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investigating the effects of public vs private education on growth and
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development in the presence of unequal wealth distribution, The authors
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have tried to address a few questions. First, why the public education
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system has been successful in skill accumulation in developed countries
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whilst it has failed to do so in less developed countries? Second, why
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do some countries with mostly privately run educational institutions
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perform much better in human capital production whilst others do not?
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Third, in an economy with unequal wealth distribution, what are the
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factors that result in public or private education as a voting
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equilibrium outcome?'
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affiliation: 'Chakraborty, B (Corresponding Author), Jadavpur Univ, Dept Econ, Kolkata,
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India.
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Goswami, Sriparna, Iowa State Univ, Dept Econ, Ames, IA 50011 USA.
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Chakraborty, Bidisha, Jadavpur Univ, Dept Econ, Kolkata, India.'
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author: Goswami, Sriparna and Chakraborty, Bidisha
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author-email: 'sriparnagoswami@gmail.com
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bidisha.chakraborty@gmail.com'
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author_list:
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- family: Goswami
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given: Sriparna
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- family: Chakraborty
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given: Bidisha
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da: '2023-09-28'
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doi: 10.1108/IGDR-02-2020-0025
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earlyaccessdate: AUG 2021
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eissn: 1753-8262
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files: []
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issn: 1753-8254
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journal: INDIAN GROWTH AND DEVELOPMENT REVIEW
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keywords: 'Growth; Public choice; Human capital; Public education; Private
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education; O15; I25; H31; J24'
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keywords-plus: 'HUMAN-CAPITAL ACCUMULATION; OCCUPATIONAL CHOICE; ENDOGENOUS GROWTH;
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POLICY; INCOME; INEQUALITY'
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language: English
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month: OCT 5
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number: '3'
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number-of-cited-references: '41'
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pages: 350-372
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papis_id: 87596566f115a382455b7a5f3ca1f94f
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ref: Goswami2021wealthdistribution
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times-cited: '0'
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title: Wealth distribution and skills generation under public and private education
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systems
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000685279900001
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usage-count-last-180-days: '1'
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usage-count-since-2013: '9'
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volume: '14'
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web-of-science-categories: Development Studies
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year: '2021'
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