Does expansion of higher education lead to trickle-down growth?

• 成果类型: Article
• 署名作者: Boehm, Sebastian; Grossmann, Volker; Steger, Thomas M.
• 署名单位: University of Fribourg; Leibniz Association; Ifo Institut; IZA Institute Labor Economics; University of London; University College London; Leipzig University; Leibniz Association; Leibniz Institut fur Wirtschaftsforschung Halle (IWH)
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2015.09.011
• 发表日期: 2015
• 页码: 79-94
• 关键词: Directed technological change; Publicly financed education; Redistributive transfers; transitional dynamics; Trickle-down growth

摘要

The paper revisits the debate on trickle-down growth in view of the widely discussed changes in the distribution of earnings and income that followed a massive expansion of higher education. We propose a dynamic general equilibrium model to dynamically evaluate whether economic growth triggered by an increase in public education expenditure on behalf of those with high learning ability eventually trickles down to low-ability workers and serves them better than redistribution through labor income taxation or education policies targeted to the low-skilled. Our results suggest that promoting higher education implies that low-skilled workers first lose in terms of consumption and income but eventually gain. Policies that aim at expanding the skills of low-ability workers make them better off only moderately because of adverse general equilibrium effects. Low-ability workers typically benefit most from redistribution. (C) 2015 Published by Elsevier B.V.