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The Effects of Income Inequality on Education Policy and Economic Growth

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DOI: 10.4236/tel.2012.21020    7,774 Downloads   17,494 Views   Citations


This paper presents a simple model to investigate the relationship among initial income inequality, education and eco- nomic growth. Public expenditure on education is determined through majority voting. Although preferences of individuals are not single-peaked, the individual with the median income becomes the decisive voter. Our model predicts that high initial inequality has a negative impact on education expenditure and therefore retards economic growth.

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The authors declare no conflicts of interest.

Cite this paper

K. Naito and K. Nishida, "The Effects of Income Inequality on Education Policy and Economic Growth," Theoretical Economics Letters, Vol. 2 No. 1, 2012, pp. 109-113. doi: 10.4236/tel.2012.21020.


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