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dc.contributor.author
Prettner, Klaus
dc.contributor.author
Schäfer, Andreas
dc.date.accessioned
2019-05-29T10:11:48Z
dc.date.available
2017-06-12T17:02:16Z
dc.date.available
2017-11-30T08:14:57Z
dc.date.available
2019-05-29T10:11:48Z
dc.date.issued
2016-03
dc.identifier.uri
http://hdl.handle.net/20.500.11850/123540
dc.identifier.doi
10.3929/ethz-a-010613896
dc.description.abstract
We investigate the effect of higher education on the evolution of inequality. In so doing we propose a novel overlapping generations model with three social classes: the rich, the middle class, and the poor. We show that there is an initial phase in which no social class invests in higher education of their children, such that the evolution of inequality is entirely driven by the level of bequests. Once a certain income threshold is surpassed, the rich start to invest in higher education of their children, which partially crowds out bequests and thereby reduces inequality in the short run. The better educated children of the rich, however, enjoy higher incomes and inequality starts to rise again. As time goes by, the middle class and eventually also the poor start to invest in higher education, but now the increase in inequality is driven by different levels of education. As the economy proceeds toward a balanced growth path, educational differences between social groupsand thus inequality decline again. We argue that (1) the proposed mechanism has the potential to explain the U-shaped evolution of inequality in rich countries in the second half of the 20th Centuryand the first decade of the 21st Century and (2) the currently observed increase in inequality is rather a transitory phenomenon.
en_US
dc.format
application/pdf
en_US
dc.language.iso
en
en_US
dc.publisher
ETH Zurich, Center of Economic Research (CER-ETH)
en_US
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
Higher education
en_US
dc.subject
Inequality
en_US
dc.subject
Piketty curve
en_US
dc.subject
Growth regime switch
en_US
dc.subject
Middle income trap
en_US
dc.title
Higher education and the fall and rise of inequality
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
dc.date.published
2016
ethz.journal.title
Economics Working Paper Series
ethz.journal.volume
16/240
en_US
ethz.size
36 p.
en_US
ethz.code.ddc
DDC - DDC::3 - Social sciences::370 - Education
en_US
ethz.code.jel
JEL - JEL::I - Health, Education, and Welfare::I2 - Education and Research Institutions::I23 - Higher Education; Research Institutions
en_US
ethz.code.jel
JEL - JEL::I - Health, Education, and Welfare::I2 - Education and Research Institutions::I24 - Education and Inequality
en_US
ethz.code.jel
JEL - JEL::I - Health, Education, and Welfare::I2 - Education and Research Institutions::I25 - Education and Economic Development
en_US
ethz.code.jel
JEL - JEL::O - Economic Development, Innovation, Technological Change, and Growth::O1 - Economic Development::O11 - Macroeconomic Analyses of Economic Development
en_US
ethz.code.jel
JEL - JEL::O - Economic Development, Innovation, Technological Change, and Growth::O4 - Economic Growth and Aggregate Productivity::O41 - One, Two, and Multisector Growth Models
en_US
ethz.publication.place
Zurich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03635 - Bretschger, Lucas / Bretschger, Lucas
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03635 - Bretschger, Lucas / Bretschger, Lucas
ethz.date.deposited
2017-06-12T17:03:12Z
ethz.source
ECOL
ethz.source
ECIT
ethz.identifier.importid
imp59366b8b4d78e62413
ethz.identifier.importid
imp593654edb158237304
ethz.ecolpid
eth:48841
ethz.ecitpid
pub:185945
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2017-07-13T06:14:08Z
ethz.rosetta.lastUpdated
2019-05-29T10:12:02Z
ethz.rosetta.versionExported
true
ethz.COinS
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