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Private education and inequality in the knowledge economy

Policy & society, 2020-04, Vol.39 (2), p.171-188 [Peer Reviewed Journal]

2019 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. 2019 ;2019 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This work is licensed under the Creative Commons Attribution – Non-Commercial License http://creativecommons.org/licenses/by-nc/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 1449-4035 ;ISSN: 1839-3373 ;EISSN: 1839-3373 ;DOI: 10.1080/14494035.2019.1636603

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  • Title:
    Private education and inequality in the knowledge economy
  • Author: Huber, Evelyne ; Gunderson, Jacob ; Stephens, John D.
  • Subjects: Adults ; cognitive skills ; education ; Expenditures ; Higher education ; Income inequality ; Inequality ; Political Science ; private education ; Public schools ; skill premium ; Skills ; Statsvetenskap ; wage dispersion
  • Is Part Of: Policy & society, 2020-04, Vol.39 (2), p.171-188
  • Description: This article explores the consequences of public and private spending on education at all levels, looking at skills and income inequality. We use data for 22 affluent democracies from 1960 or 1995 (depending on data availability) to 2017. High levels of public education spending consistently lower income inequality, both measured as wage dispersion and as the education premium. In contrast, higher levels of private education spending are associated with both higher wage dispersion and a higher education premium. We show that this effect works in part through differential skills acquisition. Public education spending raises the math scores of 15-years old students at the mean and at the 25 th percentile, but private education spending has no effect on skills at these levels. We find the same pattern among skills of adults; public education spending raises skills at the 25 th percentile and the mean; private spending has no effect. Finally, we also show that higher levels of adult skills indeed depress the education premium.
  • Publisher: Singapore: Routledge
  • Language: English
  • Identifier: ISSN: 1449-4035
    ISSN: 1839-3373
    EISSN: 1839-3373
    DOI: 10.1080/14494035.2019.1636603
  • Source: Taylor & Francis Open Access
    ProQuest Central
    DOAJ Directory of Open Access Journals
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