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The Effects of Income Inequality on Education Policy and Economic Growth

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Author(s): Keigo Nishida | Katsuyuki Naito

Journal: Journal of Biophysical Chemistry
ISSN 2153-036X

Volume: 02;
Issue: 01;
Start page: 109;
Date: 2012;
Original page

Keywords: Income Inequality | Majority Voting | Human Capital Accumulation | Economic Growth

ABSTRACT
This paper presents a simple model to investigate the relationship among initial income inequality, education and eco- nomic growth. Public expenditure on education is determined through majority voting. Although preferences of individuals are not single-peaked, the individual with the median income becomes the decisive voter. Our model predicts that high initial inequality has a negative impact on education expenditure and therefore retards economic growth.

Tango Jona
Tangokurs Rapperswil-Jona

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