The Distributional Bias of Public Education: Causes and Consequences

IMF Working Papers, November 1, 2004

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The Distributional Bias of Public Education: Causes and Consequences

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Bibliographic details

• Authors: Mark Gradstein, Era Dabla-Norris
• Published: November 1, 2004
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451875027.001

Main argument and model

• Public education is often intended to be progressive in its effects on income distribution, but in reality its incidence is often skewed toward the rich.
• The paper presents a simple dynamic model in which weak governing institutions allow the rich to be more effective in appropriating a larger share of public education spending, thereby preventing inequality reduction.
• The extent of the distributional bias of public education is directly related to institutional weaknesses in governance.

Empirical findings

• The empirical analysis provides tentative support for the model’s view.
• Evidence shows that the progressiveness of public education spending is related to the strength of governance.

Policy-relevant implications (as presented)

• Strengthening governing institutions is implied to reduce the ability of the rich to appropriate a larger share of public education spending and thereby increase the progressiveness of public education.
• Improving governance is linked to making public education spending more redistributive.

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