Working Paper: CEPR ID: DP2773
Authors: Mark Gradstein; Moshe Justman
Abstract: Analysis of the contribution of education to growth through its role in promoting a common culture indicates that when different cultural groups separately determine the social content of their school curricula excessive polarization can result, with less than optimal growth. The optimal trajectory involves a gradual, reciprocal convergence of school curricula towards the middle ground. This may be difficult to implement in a political context in which all agents are identified with one group or another. When curricula are determined by legislative bargaining, centralization of schooling may result in overly rapid homogenization in some cases, and - perhaps surprisingly - excessive polarization in others.
Keywords: economic growth; education; social cohesion
JEL Codes: D70; I21; O40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Education (I29) | Economic Growth (O49) |
| Education (I29) | Social Cohesion (Z13) |
| Social Cohesion (Z13) | Economic Growth (O49) |
| Absence of Common Culture (P19) | Production Efficiency (D24) |
| Education (I29) | Transaction Costs (D23) |
| Centralized Education (H52) | Common Culture (Z19) |
| Excessive Cultural Polarization (Z19) | Suboptimal Growth Outcomes (I15) |
| Ethnic Heterogeneity (J15) | Poor Economic Performance (P17) |