Effects of Educational Expenditures on Regional Inequality in the Social Quality of Life

Abstract

A bstract . Earlier studies by Liu on Quality of Life (QOL) indicators have pointed out the problems of concentration interregional inequality among the fifty states in U.S.A. Noting that the interregional inequality problem has been gradually alleviated over the past two decades, this paper attempts to provide some rudimentary explanations about this converging phenomenon through a labor market adjusting process towards social, economic and spatial equilibrium. Published state data and QOL indicators developed by Liu for 1960, 1970 and 1978 tend to support the hypothesis that investment in human resources , especially through improved elementary and secondary education , would enhance social mobility which would in turn improve labor and capital productivity. The reduced regional inequality in economic QOL seemed to be more a response than a cause when compared to that in social QOL, because variations in educational expenditures were found to be more significantly related to the social QOL indicators than to the economic ones.