Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/155525 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 6283
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The paper reexamines Lipset’s theory of democratization, by distinguishing the role of (economic) development from that of education, inequality, and (natural) resources. We highlight two contrasting effects of education and human capital accumulation. On the one side, education prompts economic growth and enriches the budget of the autocratic elite. On the other side, education increases the “awareness” of citizens - capturing their reluctance to accept a dictatorship and their labor-market aspirations - and forces the elite to expand redistribution. Along the lines of this trade-off, our theory provides a Lipsetian explanation of the positive relationship between economic development, education, and democratization, and of the negative relationship between inequality and democratization. Furthermore, we obtain new insights on the resources-curse hypothesis and on the design of effective aid to education.
Subjects: 
democratization
human capital
Lipset’s theory
resource curse
JEL: 
D72
I25
O11
O43
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.