Two recently-published studies show that
inequality in education is a significant factor affecting economic growth. Both
studies find that income inequality limits economic growth because low income
families tend to have low education outcomes. The studies recommend policies to
improve the education outcomes of disadvantaged students. Improving the education outcomes of these children
would increase workforce skills, productivity, incomes and economic output.
One study was
published by the OECD last December. The other study was published in February
by the European Expert Network on Economics of Education (EENEE), a think tank
sponsored by the European Commission. It was done by economists from the
University of Sydney and the London School of Economics.
The studies have
important implications for education policy in Australia. Although income and
education inequality in Australia is less than in many OECD countries they are
significant. In particular, a large proportion of children from low
socio-economic backgrounds do not achieve an adequate education and there are
large gaps in achievement between rich and poor. Increasing the education
outcomes of these children would not only increase their life chances but would
also increase economic growth.
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