Social Background, Education, and Inequality
19 Pages Posted: 22 May 2019
Date Written: July 2019
The role parents' education plays for the educational achievements of children is a source of unequal opportunities. Through this channel the number of educated affects the options of future cohorts, creating a social multiplier effect making improvements in education self‐reinforcing. Policies to compensate for inequalities of opportunities—public education or transfers—have very different implications. Transfers not only reduce inequality on impact but also reduce social mobility, while public education—even if a perfect substitute to private education—works in the opposite direction. Social impediments to education are similar to a market imperfection, and publicly provided education may lead to a Pareto improvement.
JEL Classification: D3, I2, H2, H4
Suggested Citation: Suggested Citation