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About Annual Meeting
Educational differences are an important moral justification for income inequality. Empirically, the link between education and earnings is clear but its explanation, and therefore its normative implications, are subject to intense theoretical dispute. Aristotle proposed that people believe job performance merits reward because it makes valuable contributions and, moreover, this moral reasoning is shared by all classes and in all societies. But alternative theories have dramatically different factual and moral implications. Using data from large representative national samples in Poland, Hungary, Bulgaria, Australia, Finland, and the Netherlands, we find that the public in all countries favor large rewards for education (contrary to Radical Equalitarian and Credentialist theories). In formerly Communist nations, where schooling was free, returns to education modest, and alternatives absent, the public favored even larger rewards to education than citizens of market economies. This is quite contrary to economists' widely accepted Human Capital theory; contrary to Existential arguments; and contrary to Hegemonic and Dominant Ideology arguments. Instead, legitimate rewards to education reflect widely shared moral principles.