In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when...

We analyze the interaction between human capital and growth in Russia, where there are substantial human capital reserves but an education system seriously out of sync with the world economy. We define a rule for the timing of educational restructuring, and show that this time is pareto optimal...

This paper studies how linear tax and education policy should optimally respond to skill-biased technical change (SBTC). SBTC affects optimal taxes and subsidies by changing i) direct distributional benefits, ii) indirect redistributional effects due to wage-(de)compression, and iii) education...

College education is not only an investment; for many people it also generates consumption benefits. If these benefits are normal goods, then the rich attend college at higher rates than the poor. Furthermore, the marginal poor student is smarter than the marginal rich student. Colleges aiming...

Frédéric Bastiat (1801-1850) was an economist and journalist. A member of the French Liberal School, he is best known for his free trade ideas and his philosophy of law. Mark Blaug ranks him as one of the 100 greatest economists before Keynes. Schumpeter called him a brilliant economic...

We use the repeated random assignment of external examiners to school institutes in Italy to investigate whether the effect of external monitoring on test score manipulation persists over time. We find that this effect is still present in the tests taken one year after exposure to the examiners,...

Government subsidies to higher education have recently become a hot button political issue. But what if the federal government doesn't actually subsidize higher education, but rather, taxes it? This article gauges efficient investment levels based on marginal rates of return relative to other...

This paper presents new results on the relationship between income inequality and education expansion-that is, increasing average years of schooling and reducing inequality of schooling. When dynamic panel estimation techniques are used to address issues of persistence and endogeneity, we find a...

I study a model where Information Technology, while typically increasing overall inequality, is likely to harm some people at intermediate and high levels of the distribution of income but to benefit people at the bottom. Within a given occupation it may harm some workers while benefitting...

Die Fähigkeit zur Einführung neuer Produkte und Verfahren ist in einer sich rasch wandelnden globalen Wissensgesellschaft zu einem entscheidenden Faktor für den wirtschaftlichen Erfolg geworden. Die Wachstumsperspektiven von Ländern und Regionen hängen in hohem Maße von ihrer Ausstattung...