Tuesday, June 9, 2009

More on education and inequality

There's a great article over at VOX by Claudia Goldin and Lawrence Katz: "Education and Technology: Supply, Demand and Income Inequality".

Once again we see that educational attainment is the key to growth and development. The authors of this article highlight the impact on income distributions. Drew's comment on the last post is spot-on. Taking money away from education in the short run will likely turn out to be a huge mistake in the long run.

Wednesday, June 3, 2009

Inequality and the middle class

Here is an excellent article over at Forbes by Thomas Cooley.

Students of development econ will appreciate the power of the Solow model (stability of alpha and importance of the tech change parameter) highlighted by Cooley, though he does not discuss the model directly. The importance of human capital formation (education) is another key point.