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Poverty Alleviation and Correction of Income Disparity Through Fiscal Spending on Education
Author(s) -
Nakamura Yui
Publication year - 2020
Publication title -
poverty and public policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.206
H-Index - 4
ISSN - 1944-2858
DOI - 10.1002/pop4.268
Subject(s) - poverty , human capital , economics , government (linguistics) , welfare , government spending , public economics , development economics , economic growth , labour economics , philosophy , linguistics , market economy
As demonstrated by human capital theory, accumulation of human capital through receiving education can increase individual incomes and may enable people to escape from poverty. However, education systems proposed by a utilitarian government exclude some individuals who cannot receive advanced education as a means of alleviating poverty. Moreover, such education systems usually expand income disparity between individuals who receive advanced education and those who do not. This study focuses on a possible situation in which education systems simultaneously enable poverty decline, correct income disparity, and maximize social welfare based on Bentham that is adopted by a utilitarian government. We then clarify a mechanism through which supporting and developing the individual educational environment can increase the quality of basic education and incomes of the poor even if they cannot receive advanced education.