Educational Opportunity and Income Inequality

With the broad support of both parties, affordable higher education is always an important element of American social policy. Financial aid greatly increased the number of people completing university - usually considered good. However, we show that making cheaper education may increase income disparity. The mechanism that drives our results is a combination of credit constraints and the role of educational 'signal' that Spence (1973) first explored. If borrowing of education is difficult, the lack of university education may mean less capability or higher ability but less funds. When the government is planning to lower borrowing and tuition fees at a more affordable price, excellent talents receive education, withdraw from the uneducated talent pool, lower wages of unskilled workers, Raise skill premium.

Public: Hendel, Igal, Shapiro, Joel & Willen, Paul, 2005. "Educational Opportunities and Income Disparities", Journal of Public Economics, Elsevier, vol. June 89 (5-6), pages 841-870. Thank you for your help

On the other hand, it is not difficult to conclude that the lack of quality educational opportunities can result. As the educational gap widens, the income gap widens and leads to crime, violence, dissatisfaction, unhealthy and intense population, and an unstable society. Historically, the dissatisfied and deprived population caused confusion and revolution. Many people are moved only by the unfairness of education and I am willing to work very hard to solve this problem. Also please keep in mind that closed communities and suburban protected areas do not prove the recession or instability of domestic social structure. Regardless of where you live, the overall education of the population affects the whole country. Protecting the future of you and your child is a powerful reason to worry about the fairness of education.

The focus of this paper is on the relationship between expansion of education and income disparity. Expanded education is often regarded as an important policy tool for dealing with the expansion of income inequality in the medium term. Expansion of education is not only considered to be important for promoting economic growth (Barro, 2013; Hanushek, 2013) but also to cut off the spread of poverty among generations and to reduce opportunity inequality It also helps to reduce future income disparity. Reducing income disparity by expanding education also reduces the need for fiscal redistribution through distorted fiscal policies (cumulative income taxes, transfer of payments through economic surveys, etc.). Therefore, from this point of view, expansion of education has the potential "advantageous for both sides" to achieve both efficiency and equity goals.