Segregation, Education Cost, and Group Inequality

نویسندگان

چکیده

Abstract This study analyzes the interplay between segregation level, education cost, and evolution of group inequality. In a market economy, individuals have incentives to invest in skill acquisition because wage differentials. Because achievement is costly, person with higher inherent ability or better community background more likely invest. Bowles, Loury, Sethi (2014) show possibility inequality high level when network externalities over period affect an individual’s decision achievement. emphasizes effect costs on Even high, if societal cost not sufficiently large, disparity may evolve. Observing that vary significantly across countries depending structure their educational institutions, this theoretical analysis suggests some suffer from between-group than others systems impose individuals.

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ژورنال

عنوان ژورنال: Economics : the Open-Access, Open-Assessment e-Journal

سال: 2023

ISSN: ['1864-6042']

DOI: https://doi.org/10.1515/econ-2022-0042