Dynamic Equality of Opportunity

35 Pages Posted: 2 Apr 2016 Last revised: 12 Jun 2016

See all articles by John E. Roemer

John E. Roemer

Yale University - Department of Political Science; Yale University - Cowles Foundation

Burak Ünveren

Yildiz Technical University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: March 31, 2016

Abstract

What are the long-term effects of policies intended to equalize opportunities among different social classes of children? To find out, we study the stationary states of an intergenerational model where adults are either White or Blue collar employees. Both adults and the state invest in their children’s education. Our analysis indicates that the major obstacle to equalizing opportunities in the long-run is private educational investment. Next we examine economies where only the state invests in education, motivated by the Nordic experience. In a majority of these economies, no child lags behind regarding future prospects, a theoretical result confirmed by simulations.

Keywords: Equality of opportunity, intergenerational transfers, education, dynamic model

JEL Classification: H21, D63, I24

Suggested Citation

Roemer, John E. and Ünveren, Burak, Dynamic Equality of Opportunity (March 31, 2016). Cowles Foundation Discussion Paper No. 2034. Available at SSRN: https://ssrn.com/abstract=2757308 or http://dx.doi.org/10.2139/ssrn.2757308

John E. Roemer (Contact Author)

Yale University - Department of Political Science ( email )

Box 208269
New Haven, DC 06520-8269
United States
203-432-5249 (Phone)
203-432-6196 (Fax)

HOME PAGE: http://pantheon.yale.edu/~jer39/

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

Burak Ünveren

Yildiz Technical University - Department of Economics ( email )

Istanbul
Turkey

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