The Effects of Income Inequality on Education Policy and 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.
Share and Cite:
K. Naito and K. Nishida, "The Effects of Income Inequality on Education Policy and Economic Growth,"
Theoretical Economics Letters, Vol. 2 No. 1, 2012, pp. 109-113. doi:
10.4236/tel.2012.21020.
Conflicts of Interest
The authors declare no conflicts of interest.
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