1 / 5

Opportunities and Inequality

Opportunities and Inequality. James Mirrlees Chinese University of Hong Kong Santa Margherita in Ligure 7 June 2013. Inequality and selection. Jobs and (income) inequality. Allocation by selection tests as well as price. Equality of opportunity: what is it?

matia
Download Presentation

Opportunities and Inequality

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Opportunities and Inequality James Mirrlees Chinese University of Hong Kong Santa Margherita in Ligure 7 June 2013

  2. Inequality and selection • Jobs and (income) inequality. • Allocation by selection tests as well as price. • Equality of opportunity: what is it? • Assignment by tests better than random? • We can’t all have the same. • How much should with worse jobs and training be compensated?

  3. Training and education • Two types of skill hierarchy: • Instruction detail • Performance facility • Training can reduce the detail of instructions needed; • And it can improve ability to perform. • Longer training achieves more – up to a point. • So longer courses for less able?

  4. How many training places? • What if more are trained than will be used? • Only medical students with the best performance would become doctors. • Better quality. • Lower doctor pay. • Frustration below the cut-off. • Consider education in the arts.

  5. Policies • Eliminating or seriously reducing the hierarchy does not work. • But over-training should reduce skill-differences, and increase skilled jobs. • Paying for education is egalitarian, at least in theory. Requires insurance as well as loans. • Subsidising low-pay jobs. Otherwise higher wages create unemployment, long-term.

More Related