TEL> Vol.2 No.1, February 2012

The Effects of Income Inequality on Education Policy and Economic Growth

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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.

Cite this paper

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.

References

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