Working Paper: CEPR ID: DP1925
Authors: Graziella Bertocchi; Michael Spagat
Abstract: We study the evolution of an educational system which is founded on a hierarchical differentiation between technical and general education, with a superior social status attached to general. The resulting dynamic political equilibrium is best summarized by the ratio of vocational to general education, which we interpret as a measure of the degree of stratification of the educational system. We show that this ratio first rises and then declines with the level of development, displaying an inverted U-shape which reflects the complex interaction between economic and political forces, including aggregate income growth, wealth inequality and political participation. We predict that developing countries will tend to overinvest in vocational education at the expense of general.
Keywords: technical education; general education; social status; income distribution; politics; growth
JEL Codes: D31; 120; J24; 040
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| economic development (O29) | vocational education (J24) |
| economic development (O29) | educational stratification (I24) |
| middle class gains economic and political power (P16) | general education (A21) |
| general education (A21) | vocational education (J24) |
| income levels (J31) | vocational-general education ratio (I29) |