The impact of education on income inequality and intergenerational mobility

In this paper, by constructing a four-stage overlap generation model, it is possible to estimate the innovative ability, compulsory education (first grade to ninth grade), and non-compulsory education (10th graders to 12th grader) for income disparity and intergenerational mobility Analyze the impact. . We found that the capacity of nature in early education and family investment play an important role in explaining income inequality and intergenerational income liquidity. Children of the wealthiest families are only 36 times faster than the children of the poorest families, but the disparity in human capital has expanded to 35 at the end of compulsory education and 89 at the end of non-compulsory education. The important reason for this increase is that the poor families have less investment in early childhood education than wealthy families and as children are enrolled in lower quality schools it is less likely to participate in higher education is. By trying various types of government education expenditure policy experiments, we found that poor parents are the most effective and effective policies to directly reduce budget constraints on infantile education investment.

If income disparities prevent intergenerational movement, we need to observe that liquidity declines at the time the income disparity is expanding in the United States. It is too soon to make a clear conclusion about this as it is necessary to know if the mobility of Americans born after 1979 has declined. The findings so far have been various. In several studies it is concluded that mobility between generations may decline, but other studies have not found any signs of declining.

In this paper, by constructing a four-stage overlap generation model, it is possible to estimate the innovative ability, compulsory education (first grade to ninth grade), and non-compulsory education (10th graders to 12th grader) for income disparity and intergenerational mobility Analyze the impact. . We found that the capacity of nature in early education and family investment play an important role in explaining income inequality and intergenerational income liquidity. Children of the wealthiest families had only 1.36 times the wisestness of the children of the poorest families, but the disparity in human capital was 2.35 times at the end of compulsory education, at the end of non-compulsory education It became 2.89 times. The important reason for this increase is that poor families do not invest much in early childhood education rather than wealthy families, so children are less likely to participate in tertiary education as they have entered low quality schools is.

If educational investment depends on private funds or if public education is funded locally, inequality may worsen if generations' income liquidity is low. The inhomogeneity of the neighborhood income will bring about isolation to 59 wealthier and less enriched areas, thereby strengthening the stability of intergenerational income. Therefore, not only parentage but also social influence may affect human capital investment and income situation. Inequality can cause inequality. Neighborhood effects are not only due to differences in access to resources but also due to lack of social interactions and role models in poor communities with few educational resources.