This is probably related to reason one: the level of education is often proportional to the level of skill. With a higher level of education, a person often has more advanced skills that few workers are able to offer, justifying a higher wage. The impact of education on economic inequality is still profound in developed countries and cities. Although there are usually policies of free education in developed nations, levels of education received by each individual still differ, not because of financial ability but innate qualities like intelligence, drive and personal ability. Moreover, receiving the same level of education does not mean receiving education of the same quality.
The choice of school saliently demonstrates that having high economic capital influences the quality of acquired knowledge on the education journey. Another study mentioned above on the group of doctorate degree recipients, proves that they rose up in the education aspect despite having low economic capital is only possible after they build up their economic capital through various means, e.g. institutional support, employment, loans (Castillo, 2014). Economic capital not only limits an individual’s accessibility to schools, the standard of cultural capital being refined into academic achievements is limited by recognition and appreciation in lower quality schools (Jæger, 2011). The lack of economic capital resulted in having low accessibility to education is equivalent for healthcare services.
There are some education policies that focus on equity that can help reduce economic downfalls in the future. "OECD research has shown that a more equitable distribution of educational opportunities typically results in a more equitable distribution of labor income in countries. It’s also clear that people with higher levels of education have a large competitive advantage in the labor market, both in good and bad economic periods". This helps secure jobs, and higher earnings for future individuals, helping decrease inequality over time. For example, this graph shows the statistics of income inequality in different parts of the world.
The notion that education generates sufficient external benefits, either through higher levels of economic growth spillovers is examined and found lacking. Even under conditions of market failure, government failure is omnipresent and sufficiently. Through education provides positive externality and that university education needs to be subsided the government might not have enough money to pay for education which might also reduce the funds paid by the
Mike Rose, in his excerpt from Why School?, questions the reliability of the educational system and its key focus on economic readiness. He states that schools stress the importance of economics, accountability, and compliance over previously sought over qualities like curiosity, intellect, and courage. Rose argues that education is spread mainly due to economic motivation; money motivates society more than dreams and desires. This economic focus is combined with assessments to calculate the number of students who do poorly in school and weed them out. Rose believes the economic motive merged with this assessment restricts what should be the main focus of school: development.
Credentialism refers to increasing the minimum educational requirements for employment at a particular job, profession, or field. This means that, before, you could be employed for a particular job with an Associates degree that now requires at minimum a Bachelors degree. Credentialism relates to inequality as increased costs for investing in a higher education may be out of reach for those who cannot afford it. This can maintain the status quo, allowing the upper class to maintain their privileges and keeps those in lower classes from achieving vertical mobility. The concept of White privileges is one thing I learned in this class that makes me think different than before.
Education has been a core value in society all our the world for many centuries. Education can be defined as a process to gain knowledge, and basic skills. “The importance of College: A Self-Fulfilling Prophecy” by Daniel Indiviglio takes a closer look at college education. “Those who go to college make more money and have more opportunities than those who don 't.” Those who go to college have a better chance of getting a better future than those, who do not. On the flip side college can be expensive and there is people who cannot afford it.
In Atkinson, (2009) “The difference principle requires that inequalities in a society should work to the greatest benefit of the least advantage.” The goal of student loans has been to make higher education affordable particularly for those who would otherwise not be able to attend. The negative consequences of student loans is an increase in defaults, which is only making those who offer loans more reluctant to lower the cost. Another result, is minorities and women still receive fewer higher degrees among the groups studied. Most people want to pursue a higher education but are weary of the future cost associated. A continued reliance on federal loans reduces that opportunity for an open market which could potentially lower interest
Structural mobility has two possible outcomes, one is when an individual improves the indicators of Social Classes (wealth, education etc.) that enables them to move up the hierarchy. Second is when an individual fails to sustain or maintain their social class, their situation may worsen. As for Circulation Mobility, it depends on the fairness in the allocation of opportunities and other necessities given by the society (Bok, 1996). Rise in Social inequality have been proven by the wide salary gap between the rich and the poor.
Education policies, especially those that emphasizes on equity, can be one of the most impactful tools that countries have to improve their inequality level in the long run. A more equitable distribution of educational opportunities among society will lead to a more equitable distribution of labour income in a country (OECD research). In fact, people with higher level of education typically have a greater competitive advantage in the labour market regardless of the current states of the economy. Thus, education policies that focuses on equity could possibly promote higher intergenerational earnings mobility and thus, reduce income inequality over
The meaning of the Pell grant is to help economically disadvantaged students received a higher education by reducing the burden of the tuition and fee costs, and thereby, increase college participation. However, these good intentions of the Pell grant have caused one profound and unplanned consequence; which is the contribution to growing tuition cost for public and private colleges and universities. Supply and demand are the basic concepts of economics, so it’s no surprise that the increasing demand for higher education brought on by the Pell grant will have the consequence of rising tuition. More importantly, though, when Pell grants are used to pay for college, students are not as concerned with the cost as they would be if they were paying from their own pocket. As a result, the law of demand
There are pros and cons when it comes to this subject and understanding them can help form an opinion. Some pros of income or wealth redistribution could include a sense of fairness, and how it sometimes has positive effects for the poor as well as the rich. It helps bring in the gap of economic wealth helping prevent inefficiencies in the economy. The redistribution of income is not a hot topic to some but it has some positive effects as long as money is properly spent and the percentage of poverty is weakened. As for the cons, it is said that the redistribution of income or wealth goes against what the American economy stands for in a sense of a free capitalism.
The problem of income inequality is not something new, but it is something that people must worry about because it is affecting not only our wallets, but our communities as a whole. I agree on the author’s point of view about income inequality in the United States his position is very similar to another Robert Reich documentary called “Inequality for all” where he mentions all the aspects that brought United States economic system to a hold just to help a fraction of all population one of those systems was education where before the nineteen eighties it was cheaper to go to college than nowadays or the fact that workers were pay almost the same as any other for their sacrifice . Going back to the video on debate he mentions how policies changed
5. Do you agree with Professor Stiglitz that "inequality matters."? I absolutely agree with Professor Stieglitz on the notion that inequality matters. It is mainly so because competition which can only be established by inequality is crucial and significant in the development attained at individual level as well as in the national level 6. Have you investigated the differences in the social safety net in the U.S. versus those in Western Europe to diminish the effects of economic inequality?