Tuesday, November 12, 2013

Education and inequality - QOTD

Professor Katz illustrates this with a nifty calculation. Between 1979 and 2012, the share of national income captured by the richest 1 percent of taxpayers increased from 10 percent to 22.5 percent. Had their share instead remained at 10 percent and the rest been distributed equitably among taxpayers in the bottom 99 percent, each would have $7,105 more to spend. 

By contrast, between 1979 and 2012 the gap between the annual wages of a typical family of two full-time workers with college degrees and one made up of two high school graduates grew by $30,000, after inflation. 

“Nothing we do with the education supply will have a big impact among the top 1 percent,” Professor Katz said. But “could it improve the upward mobility and the prospects of a better job for Americans born in the bottom half of the income distribution? Yes.”