Calo-Blanco, Aitor and Villar, Antonio (2009): Education, Utilitarianism, and Equality of Opportunity. Published in: Fundación BBVA - Documentos de Trabajo No. 13 (2009)
Download (133kB) | Preview
We analyze in this paper the impact of different policies on the investment of the families in the education of their children. Families make decisions on the level of human capital of their offsprings regarding the future income that this capital entails (under the assumption that higher education levels yield higher expected income). The families' optimal investment in education depends on their preferences (summarized by their time discount and risk aversion parameters) and their circumstances (initial wealth, parents' education, and children' natural abilities). The public authority designs a balanced tax/subsidy scheme in order to maximize aggregate welfare. We compare the case of a purely utilitarian planner with one that cares about the equality of opportunity.
|Item Type:||MPRA Paper|
|Original Title:||Education, Utilitarianism, and Equality of Opportunity|
|Keywords:||Equality of Opportunity, Investment in Education, Policy design|
|Subjects:||D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
|Depositing User:||Francisco Pérez|
|Date Deposited:||19. Nov 2009 05:46|
|Last Modified:||12. Feb 2013 21:59|
Calo-Blanco, A. (2008), Equality of Opportunity and Optimal Effort Decisions under Uncertainty, mimeo.
Calo-Blanco, A. & Villar, A. (2009), Quality of Education and Equality of Opportunity in Spain: Lessons from PISA, mimeo.
Card, D. (1999), The Causal Effect of Education on Earnings, in O. Ashenfelter and D. Card (Eds.), Handbook of Labor Economics, Volume 3, North-Holland, Amsterdam.
Carneiro, P., Cunha, F. & Heckman, J.J. (2003), The Technology of Skill Formation, mimeo.
De Fraja, G., Oliveira, T. & Zanchi, L. (2008), Must Try Harder. Evaluating the Role of Effort in Educational Attainment, Review of Economics and Statistics, forthcoming.
Hanushek, E.A., Ka Yui Leung, Ch. and Yilmaz, K. (2003), Redistribution through Education ant other Transfer Mechanisms, Journal of Monetary Economics, 50 : 1719-1750.
Heckman, J.J. (2006), Skill Formation and the Economics of Investing in Disadvantaged Children, Science, 312: 1900-1902.
Heckman, J.J. (2007), The Economics, Technology, and Neuroscience of Human Capability Formation, Proceedings of the National Academy of Science, 104 : 13250-13255.
Heckman, J.J. & Rubinstein, Y. (2001), The Importance of Noncognitive Skills: Lessons from the GED Testing Program, American Economic Review, 91 : 145-149.
Lefranc, A., Pistolesi, N. & Trannoy, A. (2007), Equality of opportunity: Definitions and testable conditions, with an application to income in France, mimeo.
Roemer, J. E. (1993), A pragmatic theory of responsibility for the egalitarian planner, Philosophy and Public Affairs, 22 : 146--166.
Roemer, J. E. (1998), Equality of Opportunity, Harvard University Press, Cambridge, MA.
Roemer, J. E. et al (2003), To what extent do scal regimes equalize opportunities for income acquisition among citizens ?, Journal of Public Economics, 87 : 539 565.
Roemer, J. (2006), Democracy, Education and Equality, Cambridge University Press, on-line edition.
Ruiz-Castillo, J. (2003), The Measurement of the Inequality of Opportunities, in Bishop, J. & Y. Amiel (eds.), Research in Economic Inequality, 9 : 1-34.
Villar, A. (2005), On the Welfare Evaluation of Income and Opportunity, Contributions to Theoretical Economics, vol. 5, Nº 1, Article 3.