Asymmetries in education spread : “Equilibrium” versus “Social Optimum”

Abstract

We try to explain main empirical regularities of the distribution of higher education attainment across regions by using a theoretical framework inspired by Uzawa (1965)’s neoclassical growth model and Lucas (1988)’s view of positive externalities of education. We rationalize the strong correlation between educational attainment and regional accessibility, the relative importance of public universities in less accessible areas and the smaller regional variation in schooling rates shown by the public universities as compared with private establishments.