We develop a classical macroeconomic model to examine the growth and distributional consequences of education. Contrary …-reducing. Expansive education policies may foster growth and reduce earning inequalities between workers, but only by transferring income … from workers to capitalists. Further, the overall effect of an increase in education depends on the actual characteristics …

Estimates of the effect of education on GDP (the social return) have been hard to reconcile with micro evidence on the … of education reduces the private return by 2 percentage points, consistent with Katz-Murphy's (1992) elasticity of …