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Full-Text Articles in Social and Behavioral Sciences

Inequality And Human Capital In Appalachia: 1960-2000, Dan Black, Seth Sanders Jan 2009

Inequality And Human Capital In Appalachia: 1960-2000, Dan Black, Seth Sanders

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper examines changes in the earnings distribution of men age 25-64 between 1960 and 2000 in Appalachia and in the remainder of the U.S. Because Appalachia is more rural than the remainder of the U.S. we also examine changes in the earnings distribution in rural vs. urban areas. Our central finding is that there have been large differences in the evolution of the earnings distribution in rural vs. urban areas and this is the principal reason that Appalachia’s earnings distribution differs to some degree from the remainder of the U.S. We find that the bottom of the earnings distribution …


Public Spending On Education And The Incentives For Student Achievement, William Blankenau, Gabriele Camera Jan 2009

Public Spending On Education And The Incentives For Student Achievement, William Blankenau, Gabriele Camera

Economics Faculty Articles and Research

We build a model where homogeneous workers can accumulate human capital by investing in education. Schools combine public resources and individual effort to generate productive skills. If skills are imperfectly compensated, then in equilibrium students may under-invest in effort. We examine the effect on human capital accumulation of three basic education finance policies. Increased tuition subsidies may not be beneficial because they increase enrollment but they may lower the incentives for student achievement, hence the skill level. Policies directed at enhancing the productivity of education or making degrees more informative are more successful at improving educational outcomes.