Who Benefits from a Better Education Environment?

Abstract:     
Using an overlapping generations model, this note shows that an improvement in the effciency of human capital production decreases the net income of the young household while increasing that of the old. Without compensating redistribution, it deteriorates lifetime utilities of all generations except for the initial old households.

Keywords: Human capital, intergenerational income distribution, overlapping generations

JEL Classifications: J24, O15, I22

Working Paper Series