nep-edu New Economics Papers
on Education
Issue of 2005‒09‒29
thirty papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Changes in quantity and quality of time for children: United States, 1981-1997 By Ana I. Moro-Egido
  2. Pension, Fertility, and Education By Volker Meier; Matthias Wrede
  3. Public Pensions and Capital Accumulation: The Case of Brazil By Gerhard Glomm; Jürgen Jung; Changmin Lee; Chung Tran
  4. Political Selection and the Quality of Government: Evidence from South India By Besley, Timothy; Pande, Rohini; Rao, Vijayendra
  5. Peer Effects and Social Networks in Education and Crime By Calvó-Armengol, Antoni; Patacchini, Eleonora; Zenou, Yves
  6. Faculty Retention factors at European Business Schools. How Deans and Faculty Perceptions Differ. By Moratis, L.; Baalen, P.J. van; Teunter, L.H.; Verhaegen, P.H.A.M.
  7. Educational Opportunities and the Role of Institutions By Ammermüller,Andreas
  8. Inequality of Opportunities vs Inequality of Outcomes: are western societies all alike? By Nicolas Pistolesi
  9. Propensity score matching, a distance-based measure of migration, and the wage growth of young men By John C. Ham; Xianghong Li; Patricia B. Reagan
  10. Wage Fairness, Growth and the Utilization of R&D Workers By Lundborg, Per
  11. Peer Effects and Social Networks in Education and Crime By Calvó-Armengol, Antoni; Patacchini, Eleonora; Zenou, Yves
  12. What Is Behind Stagnant Unemployment in Ukraine: The Role of the Informal Sector By Olga Kupets
  13. The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data By Anders Björklund; Mikael Lindahl; Erik Plug
  14. Do School-to-Work Programs Help the "Forgotten Half"? By David Neumark; Donna Rothstein
  15. Bildungsreform und Werteerziehung: Eine ökonomische Betrachtung By Benedikt Langner
  16. Spillovers in Vocational Training By Bornemann, Stefan
  18. Public-Private Wage Differentials in Ireland, 1994-2001 By Gerry Boyle; Rory McElligott; Jim O'Leary
  19. Building the Stock of College-Educated Labor By Susan Dynarski
  20. The Divergence of Human Capital Levels Across Cities By Christopher R. Berry; Edward L. Glaeser
  21. Trends in U.S. Wage Inequality: Re-Assessing the Revisionists By David H. Autor; Lawrence F. Katz; Melissa S. Kearney
  22. Rising Wage Inequality: The Role of Composition and Prices By David H. Autor; Lawrence F. Katz; Melissa S. Kearney
  23. Teaching Metaheuristics in Business Schools By Helena Ramalhinho-Lourenço
  24. Education, Sex and Income Inequality in Soviet-type Socialism By Oldrich Kyn
  25. Education, Inequality and Violent Crime in Minas Gerais By Frédéric Puech
  26. The Determinants of Return Intentions of Turkish Students and Professionals Residing Abroad: An Empirical Investigation By Nil Demet Güngör; Aysit Tansel
  27. Return Intentions of University-educated Turkish Expatriates By Nil Demet Güngör; Aysit Tansel
  28. Effect of Private Tutoring on University Entrance Examination Performance in Turkey By Aysit Tansel; Fatma Bircan
  29. Availability of Higher Education and Long-Term Economic Growth By Ryo Horii; Akiomi Kitagawa; Koichi Futagami
  30. "A Quantile Regression Analysis of Wages in Panama." By Evangelos M. Falaris

  1. By: Ana I. Moro-Egido (Universidad de Granada)
    Abstract: This paper tries to analyze changes in the allocation of time decided by mothers and how different characteristics of them, such us marital status, employment status, etc., influences that allocation across the period 1981-1997 in the United States. Data reveals that there exists an increase on the quantity and quality of time devoted to children by some types of mothers and children. It is shown that the behavioral component of this change is larger than the structural component. Then, the determinants of direct and indirect time, quality versus quantity, are analyzed in a simultaneous equation framework. Estimations suggest that if a mother works, children's time is reduced. However working time is a substitutes of quantity of time with children, but not quality. Being single reduces not only time but its quality. Mother's earnings and level of education have changed their influence on the allocation of time across time.
    Keywords: Time-use, quantity and quality of time with children, family ecomics, simultaneous equation system, three-stage least squares
    JEL: J12 J13 J20
    Date: 2005
  2. By: Volker Meier; Matthias Wrede
    Abstract: A pay-as-you-go pension scheme is associated with positive externalities of having children and providing them with human capital. In a framework with heterogeneity in productivity, and stochastic and endogenous investment in fertility and education, we discuss internalization policies associated with child benefits in the pension formula. The second-best scheme displays both a benefit contingent on the contributions of children and a purely fertility-related component.
    Keywords: pay-as-you-go, fertility, human capital, externalities
    JEL: H23 H55 J13 J18
    Date: 2005
  3. By: Gerhard Glomm; Jürgen Jung; Changmin Lee; Chung Tran
    Abstract: We use an OLG model to study the effects of the generous public sector pension system in Brazil. In our model there are two types of workers, one working in the private sector, the other working in the public sector. Public workers produce infrastructure or education services. We find that reducing generosity of the public sector pensions has large effects on capital accumulation and steady state income.
    Keywords: pension reform, capital accumulation
    JEL: E62 H41 H55
    Date: 2005
  4. By: Besley, Timothy; Pande, Rohini; Rao, Vijayendra
    Abstract: This paper uses household data from India to examine the economic and social status of village politicians, and how individual and village characteristics affect politician behaviour while in office. Education increases the chances of selection to public office and reduces the odds that a politician uses political power opportunistically. In contrast, land ownership and political connections enable selection but do not affect politician opportunism. At the village level, changes in the identity of the politically dominant group alter the group allocation of resources but not politician opportunism. Improved information flows in the village, however, reduce opportunism and improve resource allocation.
    Keywords: decentralization; India; political economy; public provision of private goods
    JEL: H11 H42 O12 O20
    Date: 2005–08
  5. By: Calvó-Armengol, Antoni; Patacchini, Eleonora; Zenou, Yves
    Abstract: This paper studies whether structural properties of friendship networks affect individual outcomes in education and crime. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight on her distant friends. Using a very detailed dataset of adolescent friendship networks, we show that, after controlling for observable individual characteristics and unobservable network specific factors, the individual's position in a network (as measured by her Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Bonacich centrality increases the level of individual delinquency by 45% of one standard deviation and the pupil school performance by 34% of one standard deviation.
    Keywords: centrality measure; delinquency; network structure; peer influence; school performance
    JEL: A14 I21 K42
    Date: 2005–09
  6. By: Moratis, L.; Baalen, P.J. van; Teunter, L.H.; Verhaegen, P.H.A.M. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Developments in the management education environment present business schools with several challenges. Among these, perhaps the most important to address relates to a mission-critical resource for business schools: faculty retention. In this paper, we position and examine this problem within the context of business schools. We present the results of a research project on faculty retention that was conducted in 2003-2004 among European business school faculty and deans. The results identify the most important factors for faculty retention and suggest that there are perception gaps between faculty and deans on these factors that could lead to distorted decision-making and suboptimal resource allocation.
    Keywords: European Business Schools;Retention Factors;Retention Strategies;Business Schools at Risk;Perception Gaps between Faculty and Deans;
    Date: 2005–06–01
  7. By: Ammermüller,Andreas (ROA rm)
    Abstract: Educational opportunities determine the intergenerational mobility of human capital and are affected by institutional features of schooling systems. The aim of this paper is twofold. It intends to show how strongly student performance depends on student background as well as to explain cross-country differences in educational opportunities by decisive features of educational systems. For the latter, a two-step approach is combined with a difference-in-differences estimation in order to control for country-specific effects. The results show that educational opportunities decrease with student age in most countries. However, the attitude of parents seems to become more important while social origin becomes less important. Institutions are linked to educational opportunities. It can be shown that the institutional features of the schooling system as indicated by streaming and private schools, instruction time and school autonomy are related to different dimensions of educational opportunities.
    Keywords: education, training and the labour market;
    Date: 2005
  8. By: Nicolas Pistolesi (Institute for Social and Economic Research)
    Abstract: We analyze the extent of inequality of opportunities and inequality of outcome in nine developed countries during the 90's. We define equality of opportunity as the situation where income distributions conditional on social origin cannot be ranked according to stochastic dominance criteria. Stochastic dominance is assessed using non-parametric statistical tests. Our data come from national household surveys and social origin is defined by the respondent's father's education. USA and Italy show up as the most unequal countries both in terms of outcome and opportunity. At the opposite extreme, income distributions conditional on the fathers' education are quite similar in Scandinavian countries even before any redistributive policy. The analysis highlights that inequality of outcomes and inequality of opportunities can sometimes lead to different pictures. For instance, France and Germany experience a similar level of inequality of income while the former country is much more unequal than the latter from the point of view of inequality of opportunity. Differences in rankings according to inequality of outcome and inequality of opportunity underscore the importance of the policymaker's choice of the conception of equality to promote.
    Keywords: income inequality, inequality
    Date: 2005–08
  9. By: John C. Ham; Xianghong Li; Patricia B. Reagan
    Abstract: This paper estimates the effect of U.S. internal migration on real wage growth between the movers' first and second jobs. Our analysis of migration differs from previous research in three important aspects. First, we exploit the confidential geocoding in the National Longitudinal Surveys of Youth 1979 (NLSY79) to obtain a distance-based measure. Second, we let the effect of migration on wage growth differ by schooling level. Third, we use propensity score matching to measure the effect of migration on the wages of those who move. ; We develop an economic model and use it to (i) assess the appropriateness of matching as an econometric method for studying migration and (ii) choose the conditioning variables used in the matching procedure. Our data set provides a rich array of variables on which to match. We find a significant effect of migration on the wage growth of college graduates of 10 percent and a marginally significant effect for high school dropouts of -12 percent. If we use a measure of migration based on moving across either county lines or state lines, the significant effects of migration for college graduates and dropouts disappear.
    Keywords: Wages ; Labor mobility
    Date: 2005
  10. By: Lundborg, Per (Trade Union Institute for Economic Research)
    Abstract: In 1999, only one of three US scientists and engineers was employed to do R&D and, in several countries over the last forty to fifty years, employment of skilled workers for R&D purposes appears not to have kept pace with the overall increase in the supply of skilled workers. Low utilization of R&D personnel implies low growth per human capital endowments. To analyze the low R&D utilization/low growth equilibria, we set up an endogenous growth model in which firms set fair wages and which allows for an analysis of changes in the utilization rate of R&D workers. We find that the rise in under utilization and the fall in growth per human capital to be consistent with the increase in the demand for higher education. This could be interpreted as the “consumption” element in higher education has received an increased importance yielding a low growth effect of higher education. The results also point at problems of correctly measuring actual human capital inputs in firms.
    Keywords: Efficiency wages; fairness; growth
    JEL: J31 J41 O40
    Date: 2005–09–19
  11. By: Calvó-Armengol, Antoni (ICREA and Universitat Autònoma de Barcelona); Patacchini, Eleonora (Università di Roma "La Sapienza"); Zenou, Yves (The Research Institute of Industrial Economics)
    Abstract: This paper studies whether structural properties of friendship networks affect individual outcomes in education and crime. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight to her distant friends. Using a very detailed dataset of adolescent friendship networks, we show that, after controlling for observable individual characteristics and unobservable network specific factors, the individual's position in a network (as measured by her Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Bonocich centrality increases the level of individual delinquency by 45% of one standard deviation and the pupil school performance by 34% of one standard deviation.
    Keywords: Centrality Measure; Peer Influence; Network Structure; Delinquency; School Performance
    JEL: A14 I21 K42
    Date: 2005–07–05
  12. By: Olga Kupets (National University "Kyiv-Mohyla Academy", Kiev and IZA Bonn)
    Abstract: In recent years there has been much policy discussion of the impact of unemployment benefits and other factors on unemployment duration in developed and transition countries. This paper presents first evidence on the determinants of unemployment duration in Ukraine. Using individual-level data from the first wave of the Ukrainian Longitudinal Monitoring Survey (ULMS -2003), which cover the period 1997-2003, we find no significant effect of benefit receipt on exits from unemployment. However, our survival analysis confirms the hypothesis that income from casual activities or subsidiary farming has strong disincentive effect on the hazard of re-employment in Ukraine. The results also indicate that individual’s age, marital status and gender, the level of education and place of residence are significantly related to the total time spent out of work. The estimates of the baseline hazard parameters do not suggest any marked negative duration dependence.
    Keywords: unemployment duration, casual work, transition countries, semiparametric duration analysis
    JEL: J64 J68 P23
    Date: 2005–09
  13. By: Anders Björklund (SOFI, Stockholm University and IZA Bonn); Mikael Lindahl (SOFI, Stockholm University and IZA Bonn); Erik Plug (University of Amsterdam, Tinbergen Institute and IZA Bonn)
    Abstract: We use unique Swedish data to estimate intergenerational associations between adoptees and their biological and adoptive parents. We argue that the impact from biological parents captures broad pre-birth factors, including genes and prenatal environment, and the impact from adoptive parents represents broad post-birth factors, such as childhood environment, for the intergenerational association in education and income. We find that both pre- and post-birth factors contribute to intergenerational transmissions, and that pre-birth factors are more important for mother’s education and less important for father’s income. We also find some evidence for a positive interaction effect between post-birth environment and pre-birth factors.
    Keywords: intergenerational mobility, nature and nurture, income, education, adoption data
    JEL: I20 J30 J62
    Date: 2005–09
  14. By: David Neumark (Public Policy Institute of California, NBER, UC-Berkeley and IZA Bonn); Donna Rothstein (U.S. Bureau of Labor Statistics)
    Abstract: This paper tests whether school-to-work (STW) programs are particularly beneficial for those less likely to go to college in their absence—often termed the “forgotten half” in the STW literature. The empirical analysis is based on the NLSY97, which allows us to study six types of STW programs, including job shadowing, mentoring, coop, school enterprises, tech prep, and internships/apprenticeships. For men there is quite a bit of evidence that STW program participation is particularly advantageous for those in the forgotten half. For these men, specifically, mentoring and coop programs increase post-secondary education, and coop, school enterprise, and internship/apprenticeship programs boost employment and decrease idleness after leaving high school. There is less evidence that STW programs are particularly beneficial for women in the forgotten half, although internship/apprenticeship programs do lead to positive earnings effects concentrated among these women.
    Keywords: school-to-career, school-to-work, education, employment
    JEL: I28 J15 J24
    Date: 2005–09
  15. By: Benedikt Langner
    Abstract: Recent articles of the public choice literature emphasize the socializing role of education in order to explain the widespread practice of publicly run schools. In schools pupils are not only provided with basic skills, e.g. literacy and numeracy, but are also instilled with norms and values. Since successful economic transactions are assumed to be more likely the more homogeneous the cultural background of agents, a centralized education system with a common curriculum might be the optimal choice of a constituency that cares for the economic wellbeing of its descendants. Hence, the socializing role of education might be used as an argument against the introduction of market mechanisms into the education system, e.g. the use of school vouchers that could lead to social segregation. This article critically analyzes this line of reasoning and tries to reveal its shortcomings. For example: If a common cultural background were really that important to economic development, how could the phenomenon of international trade be explained? This and other arguments developed in this paper question the need to trade off potential gains in educational achievement due to market-driven education reforms with potential losses in social cohesion that such reforms might provoke.
    Keywords: Public Education, Social Cohesion, Education Reform
    JEL: I21 I22 I28 O15
    Date: 2005–08
  16. By: Bornemann, Stefan
    Abstract: The German apprenticeship system is often considered a role model for vocational education. Its influence on economic growth and technological progress through the provision of human capital to the workforce is widely acknowledged. But recent declines in the number of apprenticeships have led to increasing unrest among policy makers. To counter this development, the government is considering to introduce a training levy scheme that collects training levies from non-training firms in order to subsidize apprenticeship training ("Ausbildungsplatzabgabe"). Such training levy schemes already exist in several industrialized countries and even in some sectors in Germany. Yet, economists differ greatly in opinion about this policy. More surprisingly, however, a general economic analysis of this policy instrument is still lacking. Recent contributions have relied on rather qualitative and partial analyses. This paper aims at closing this gap. Following the training literature, we use a simple oligopsonistic labor market model. Such a setting allows to explain why firms provide and (at least partially) finance general vocational training. Moreover, it can demonstrate that a positive externality arises as other firms benefit from vocational training through poaching. In principle, the Pigouvian prescription of a subsidy scheme financed by a non-distortionary tax could restore the social optimum. The proposed training levy scheme, by contrast, is a particular scheme that links subsidies and levies. This paper unveils that it basically corresponds to a uniform subsidy on apprenticeship training that is financed by a distortionary tax on labor. We show that introducing such a levy scheme can entail ambiguous repercussions on general welfare.
    JEL: H23 I22 I28 J24
    Date: 2005–09
  17. By: Joop Hartog (University of Amsterdam); Luis Diaz-Serrano (National University of Ireland Maynooth, CREB
    Abstract: We develop a simple human capital model for optimum schooling length when earnings are stochastic, and highlight the pivotal role of risk attitudes and the schooling gradient of earnings risk. We use Spanish data to document the gradient and to estimate individual response to earnings risk in deciding on attending university education, by measuring risk as the residual variance in regional earnings functions. We find that the basic response is negative but that in households with lower risk aversion, the response will be dampened substantially and may even be reversed to positive.
    Keywords: earnings risk,schooling decisions,
    JEL: I21
    Date: 2004–08
  18. By: Gerry Boyle (National University of Ireland, Maynooth); Rory McElligott (National University of Ireland, Maynooth); Jim O'Leary (National University of Ireland, Maynooth)
    Abstract: Are public sector workers in Ireland paid more than private sector employees, when such differences in productivity-related personal attributes and job characteristics are controlled for? We estimate that in 2001 the premium enjoyed by public servants was about 13 per cent. We find that the premium, is significantly bigger for those near the bottom of the earnings distribution than for those near the top, was significantly bigger for women than men in the mid-1990s but not at the end of the 1990s, and does not vary significantly across different levels of educational attainment. We estimate the premium for 2001 to be not significantly different from that estimated for 1994 despite this period a period of exceptionally rapid output and employment growth, and correspondingly sharp tightening of labour market conditions in the Irish economy. The most remarkable difference between our results and those of other researchers for other countries relates to the absolute size of the premium. A number of possible explanations for this difference are discussed.
    Keywords: public, private, wage,differentials, Ireland,
    JEL: J31 J45
    Date: 2004–10
  19. By: Susan Dynarski
    Abstract: Half of college students drop out before completing a degree. These low rates of college completion among young people should be viewed in the context of slow future growth in the educated labor force, as the well-educated baby boomers retire and new workers are drawn from populations with historically low education levels. This paper establishes a causal link between college costs and the share of workers with a college education. I exploit the introduction of two large tuition subsidy programs, finding that they increase the share of the population that completes a college degree by three percentage points. The effects are strongest among women, with white women increasing degree receipt by 3.2 percentage points and the share of nonwhite women attempting or completing any years of college increasing by six and seven percentage points, respectively. A cost-benefit analysis indicates that tuition reduction can be a socially efficient method for increasing college completion. However, even with the offer of free tuition, a large share of students continue to drop out, suggesting that the direct costs of school are not the only impediment to college completion.
    JEL: I21 I22 I28
    Date: 2005–09
  20. By: Christopher R. Berry; Edward L. Glaeser
    Abstract: Over the past 30 years, the share of adult populations with college degrees increased more in cities with higher initial schooling levels than in initially less educated places. This tendency appears to be driven by shifts in labor demand as there is an increasing wage premium for skilled people working in skilled cities. In this paper, we present a model where the clustering of skilled people in metropolitan areas is driven by the tendency of skilled entrepreneurs to innovate in ways that employ other skilled people and by the elasticity of housing supply.
    JEL: J0
    Date: 2005–09
  21. By: David H. Autor; Lawrence F. Katz; Melissa S. Kearney
    Abstract: A large literature documents a substantial rise in U.S. wage inequality and educational wage differentials over the past several decades and finds that these trends can be primarily accounted for by shifts in the supply of and demand for skills reinforced by the erosion of labor market institutions affecting the wages of low- and middle-wage workers. Drawing on an additional decade of data, a number of recent contributions reject this consensus to conclude that (1) the rise in wage inequality was an “episodic” event of the first-half of the 1980s rather than a “secular” phenomenon, (2) this rise was largely caused by a falling minimum wage rather than by supply and demand factors; and (3) rising residual wage inequality since the mid-1980s is explained by confounding effects of labor force composition rather than true increases in inequality within detailed demographic groups. We reexamine these claims using detailed data from the Current Population Survey and find only limited support. Although the growth of overall inequality in the U.S. slowed in the 1990s, upper tail inequality rose almost as rapidly during the 1990s as during the 1980s. A decomposition applied to the CPS data reveals large and persistent rise in within-group earnings inequality over the past several decades, controlling for changes in labor force composition. While changes in the minimum wage can potentially account for much of the movement in lower tail earnings inequality, strong time series correlations of the evolution of the real minimum wage and upper tail wage inequality raise questions concerning the causal interpretation of such relationships. We also find that changes in the college/high school wage premium appear to be well captured by standard models emphasizing rapid secular growth in the relative demand for skills and fluctuations in the rate of growth of the relative supply of college workers – though these models do not accurately predict the slowdown in the growth of the college/high-school gap during the 1990s. We conclude that these patterns are not adequately explained by either a ‘unicausal’ skill-biased technical change explanation or a revisionist hypothesis focused primarily on minimum wages and mechanical labor force compositional effects. We speculate that these puzzles can be partially reconciled by a modified version of the skill-biased technical change hypothesis that generates a polarization of skill demands.
    JEL: J3 D3 O3
    Date: 2005–09
  22. By: David H. Autor; Lawrence F. Katz; Melissa S. Kearney
    Abstract: During the early 1980s, earnings inequality in the U.S. labor market rose relatively uniformly throughout the wage distribution. But this uniformity gave way to a significant divergence starting in 1987, with upper-tail (90/50) inequality rising steadily and lower tail (50/10) inequality either flattening or compressing for the next 16 years (1987 to 2003). This paper applies and extends a quantile decomposition technique proposed by Machado and Mata (2005) to evaluate the role of changing labor force composition (in terms of education and experience) and changing labor market prices to the expansion and subsequent divergence of upper- and lower-tail inequality over the last three decades We show that the extended Machado-Mata quantile decomposition corrects shortcomings of the original Juhn-Murphy-Pierce (1993) full distribution accounting method and nests the kernel reweighting approach proposed by DiNardo, Fortin and Lemieux (1996). Our analysis reveals that shifts in labor force composition have positively impacted earnings inequality during the 1990s. But these compositional shifts have primarily operated on the lower half of the earnings distribution by muting a contemporaneous, countervailing lower-tail price compression. The steady rise of upper tail inequality since the late 1970s appears almost entirely explained by ongoing between-group price changes (particularly increasing wage differentials by education) and residual price changes.
    JEL: J3 D3 O3 C1
    Date: 2005–09
  23. By: Helena Ramalhinho-Lourenço
    Abstract: In this work we discuss some ideas and opinions related with teaching Metaheuristics in Business Schools. The main purpose of the work is to initiate a discussion and collaboration about this topic,with the final objective to improve the teaching and publicity of the area. The main topics to be discussed are the environment and focus of this teaching. We also present a SWOT analysis which lead us to the conclusion that the area of Metaheuristics only can win with the presentation and discussion of metaheuristics and related topics in Business Schools, since it consists in a excellent Decision Support tools for future potential users.
    Keywords: Metaheuristics, Teaching Business
    JEL: C69 M19
    Date: 2005–01
  24. By: Oldrich Kyn (Boston University)
    Abstract: This is a paper presented at the international symposium on 'Income Distribution and Economic Inequality' in Bad Homburg, West Germany in 1976. This symposium was organized by Zvi Griliches, Wilhelm Krelle, Hans-Juergen Krupp and Oldrich Kyn. The paper compares the empirical evidence on actual income distribution in Czechoslovakia and Poland with normative view of Marxian theory. The original Marxian view on distributive justice is very far from crude egalitarianism. Marx and Engels never argued for absolutely equal incomes of all people. The Marxian principle ‘equal amount of product for equal amount of labor' must necessarily produce quite considerable income differentials. The socialist principle of distribution implies that a person with higher skills should receive a higher wage than a less skilled worker. Marx wrote: 'Socialist equality is ...only the equality of the right to income and not the equality of income. It recognizes no class differences, ... but it tacitly recognizes unequal individual endowments and thus productive capacity as natural privileges'. Marx argued that 'crude communism' called for equality of wages only because it was an expression of 'envy and the desire to reduce everything to a common level' and he added 'it aims to destroy everything which is incapable of being possessed by everyone,' because 'it wishes to eliminate talent etc. by force' and because it 'negates the personality of man in every sphere'. It follows that According to Marx income inequality based on different level of education are justifiable, but income inequality between men and women is not. The empirical data for Czechoslovakia and Poland show that income differentials based on education still persist, although they were at least in Czechoslovakia significantly reduced. In both Czechoslovakia and Poland women have significantly lower incomes than men.
    Keywords: Income Distribution, Economic Inequality, Education, Sex Discrimination, Czechoslovakia, Poland, Marxism,
    JEL: O P
    Date: 2005–09–28
  25. By: Frédéric Puech (CERDI, CNRS & Université d'Auvergne)
    Abstract: This paper presents an economic model of individual crime decision relying on relative deprivation and discusses the role of education. It distinguishes between property and interpersonal crime and proposes an econometric estimation of the model for 723 municipalities of Minas Gerais, one of the 26 Brazilian states. Education has a significant reducing effect upon interpersonal crime but not on violent property crime, which is mainly influenced by inequality.
    Keywords: violent crime, deprivation, education, Minas Gerais
    JEL: D63 I21 K42 O54
    Date: 2005–09–17
  26. By: Nil Demet Güngör; Aysit Tansel (Department of Economics, METU)
    Abstract: The study estimates an empirical model of return intentions using a dataset compiled from an internet survey of Turkish professionals and Turkish students residing abroad. In the migration literature, wage differentials are often cited as an important factor explaining skilled migration. The findings of the study suggest, however, that other factors are also important in explaining the non-return of Turkish professionals. Economic instability in Turkey is found to be an important push factor, while work experience in Turkey also increases non-return. In the student sample, higher salaries offered in the host country and lifestyle preferences, including a more organized environment in the host country, increase the probability of not-returning. For both groups, the analysis also points to the importance of prior intentions and the role of the family in the decision to return to Turkey or stay overseas.
    Keywords: Skilled migration, brain drain, return intentions, higher education, Turkey
    JEL: J24
    Date: 2005–05
  27. By: Nil Demet Güngör; Aysit Tansel (Department of Economics, METU)
    Abstract: The aim of this article is to provide new evidence on the characteristics of Turkish professionals residing overseas and the factors that are important in their decision to return home or work abroad. With this aim, we present the results of a survey conducted in 2002, which deals with the return intentions of university-educated Turkish professionals residing abroad. The article thus presents information that will be useful to policymakers in Turkey and other developing countries with similar experiences. The findings indicate that many of the university-educated expatriates are those who stayed abroad to work after completing their studies, rather than professionals with work experience in Turkey.
    Keywords: Skilled migration, brain drain, return intentions, higher education, Turkey
    JEL: J24
    Date: 2005–05
  28. By: Aysit Tansel (Department of Economics, METU); Fatma Bircan
    Abstract: There is an excess demand for university education in Turkey. Highly competitive university entrance examination which rations the available places at university programs is very central to the lives of young people. In order to increase the chances of success of their children in the university entrance examination parents spend large sums of money on private tutoring (dersane) of their children. In this study, we investigate the factors that determine participation in private tutoring and the effect of private tutoring on getting placed at a university program. We further examine the impact of private tutoring on the scores of the applicants in the university entrance examination. The results indicate that controlling for other factors those students who receive private tutoring perform better in the university entrance examination.
    Keywords: Private Tutoring, University Entrance Examination Achievement, Turkey
    JEL: I2 J10
    Date: 2005–06
  29. By: Ryo Horii (Graduate School of Economics, Osaka University); Akiomi Kitagawa (Graduate School of Economics and Management, Tohoku University); Koichi Futagami (Graduate School of Economics, Osaka University)
    Abstract: This paper examines the economic growth effects of limited availability of higher education in a simple endogenous growth model with overlapping generations. With limited availability, the scarcity of human capital keeps its price high and distributes a larger share of the aggregate output to young households. Under certain conditions, it leads to greater aggregate savings in each period, thereby enabling the economy to grow faster than without any limitation. In such cases, an excessive expansion in the availability causes a temporary boom followed by a serious deficiency in investible funds, resulting in a substantial slowdown in economic growth.
    Keywords: Endogenous Growth; Human Capital; Slowdown; Intergenerational Income Distribution.
    JEL: O41
    Date: 2003–11
  30. By: Evangelos M. Falaris (Department of Economics,University of Delaware)
    Abstract: I investigate differences in the effects of worker characteristics on wages in Panama at different points of the conditional wage distribution. Public sector employment increases wages of men and of women relatively more at lower quantiles. Public sector employment increases wages of the median worker in that sector and reduces wage inequality within the sector. The existence of a labor union at a worker’s workplace increases relatively more wages of men at lower quantiles. Labor unions reduce male wage inequality within the union sector and increase average wages of union members. Unions do not increase women’s wages but reduce wage inequality within the union sector. Working for a large firm increases wages relatively more at lower quantiles. Rates of return to higher education and to experience are larger for men at higher quantiles. Experience and higher education increase men’s wage inequality. There are no differences across quantiles in rates of return to schooling and experience for women.
    Keywords: wages, Panama, quantile regression
    JEL: J31 O15
    Date: 2004

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