Differences in Education Systems across OECD Countries: the role of education policy preferences in a hierarchical system

The design of the educational system affects the degree of students’equality of opportunities and the intergenerational social mobility. The topic istherefore of paramount importance. In this paper, we document differences ineducational systems among OECD countries and argue that the system observed ina country is the result of a complex interaction between preferences for educationand political competition. To analyse individual preferences over educationfunding, we build a model that allows us to study the effects of public funding onthe welfare of agents, which are heterogeneous in terms of income and humancapital. The model takes into account the hierarchical nature of the educationalsystem and emphasises the role played by family background. Our theoreticalresults might help to explain why some OECD countries seem to remain stuck in a "low education" educational traps.