abstract: 'Purpose This paper aims to understand the differing impacts of wealth

  distribution on human capital accumulation and skilled-unskilled labour

  generation under three educational paradigms as follows: private, public

  and a system of mixed education. Design/methodology/approach The authors

  use an overlapping generations model. Findings The wealth dynamics show

  that both in the private education system and public education system,

  there are two possible outcomes- stagnation and steady growth depending

  on the efficiency of the education system, skill premium and other

  parameters. The choice of the education system through voting is

  discussed. It is found that skilled workers would always vote for

  private education whilst unskilled workers vote for private education if

  public education expenditure of the economy is low. Research

  limitations/implications The study is subject to several limitations.

  This paper considers the rate of interest and wage rate to be

  exogenously given, and thus ignores the general equilibrium effects. The

  authors do not consider the labour-leisure choice. The introduction of

  labour leisure choice in the model would alter many of the results. The

  authors do not consider heterogeneous ability across individuals. The

  analysis of the differential efficiency of the different education

  systems needs further, rigorous research. Also, this paper does not

  consider other occupations such as entrepreneurship and self-employment.

  This paper considers the labour demand function to be perfectly elastic,

  and hence, does not consider any demand constraint. What happens if

  bequests are taxed? What happens if parents are not altruistic? These

  questions may be addressed in future research. Social implications If

  the proportion of tax paying skilled labour is low in any country, pure

  public education may not be able to generate sustained human capital

  growth. For countries with a sufficiently large proportion of skilled

  labour, the public education system would be successful. On the other

  hand, if skill premium is low or the education system is poorly managed

  private education system may fail too. Originality/value Whilst

  investigating the effects of public vs private education on growth and

  development in the presence of unequal wealth distribution, The authors

  have tried to address a few questions. First, why the public education

  system has been successful in skill accumulation in developed countries

  whilst it has failed to do so in less developed countries? Second, why

  do some countries with mostly privately run educational institutions

  perform much better in human capital production whilst others do not?

  Third, in an economy with unequal wealth distribution, what are the

  factors that result in public or private education as a voting

  equilibrium outcome?'
affiliation: 'Chakraborty, B (Corresponding Author), Jadavpur Univ, Dept Econ, Kolkata,
  India.

  Goswami, Sriparna, Iowa State Univ, Dept Econ, Ames, IA 50011 USA.

  Chakraborty, Bidisha, Jadavpur Univ, Dept Econ, Kolkata, India.'
author: Goswami, Sriparna and Chakraborty, Bidisha
author-email: 'sriparnagoswami@gmail.com

  bidisha.chakraborty@gmail.com'
author_list:
- family: Goswami
  given: Sriparna
- family: Chakraborty
  given: Bidisha
da: '2023-09-28'
doi: 10.1108/IGDR-02-2020-0025
earlyaccessdate: AUG 2021
eissn: 1753-8262
files: []
issn: 1753-8254
journal: INDIAN GROWTH AND DEVELOPMENT REVIEW
keywords: 'Growth; Public choice; Human capital; Public education; Private

  education; O15; I25; H31; J24'
keywords-plus: 'HUMAN-CAPITAL ACCUMULATION; OCCUPATIONAL CHOICE; ENDOGENOUS GROWTH;

  POLICY; INCOME; INEQUALITY'
language: English
month: OCT 5
number: '3'
number-of-cited-references: '41'
pages: 350-372
papis_id: 87596566f115a382455b7a5f3ca1f94f
ref: Goswami2021wealthdistribution
times-cited: '0'
title: Wealth distribution and skills generation under public and private education
  systems
type: Article
unique-id: WOS:000685279900001
usage-count-last-180-days: '1'
usage-count-since-2013: '9'
volume: '14'
web-of-science-categories: Development Studies
year: '2021'