Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 18

Education or training programs are usually conceived as being better than ''welfare'' as a way of improving the situation of low-income people because such programs expand production, whereas welfare programs may reduce it. But the evidence of whether education or training programs really add significantly to peoples' earning power is mixed, at best. Can education programs be expanded enough to achieve desired distributional goals? Or will it always be necessary to fall back on some forms of (productionreducing) tax and transfer programs?