This paper presents a simple model of the links between education, democratization and economic developmnet. In a context of imperfect capital markets, we investigate the incentives for a capitalist oligarchy to subsidize the education of poor workers and to initiate a political transition.

This paper analyses the links between openness, education and inequality from a political economy point of view. We start by presenting various channels through which external liberalization may affect the pattern of educational responses and we derive the implications for inequality and...