CAN EDUCATION POLICY ADDRESS THE WAGE GAP? A NOTE ON PUBLIC SKILL FORMATION IN DEVELOPING COUNTRIES

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Abstract

The potential distributional effects of public education as a producer of endowments are discussed, taking into consideration the presence of systemic inefficiency in the sector, which is typical in developing economies. The analysis has implications for policymakers, as it suggests the following: a) not addressing the inefficiency in educational systems has a cost in terms of wage inequality, and b) the effects of trade may be mediated or even reversed by the orientation of the education policy. Copyright © 2010 John Wiley & Sons, Ltd.

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