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Education and Income Inequality: New Evidence from Cross-Country Data

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Author Info
De Gregorio, Jose
Lee, Jong-Wha

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Abstract

This paper presents empirical evidence on how education is related to income distribution in a panel data set covering a broad range of countries for the period between 1960 and 1990. The findings indicate that educational factors--higher educational attainment and more equal distribution of education--play a significant role in making income distribution more equal. The results also confirm the Kuznets inverted-U curve for the relationship between income level and income inequality. We also find that government social expenditure contributes to more equal distribution of income. However, a significant proportion of cross-country variation in income inequality remains unexplained. Copyright 2002 by The International Association for Research in Income and Wealth.

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Article provided by Blackwell Publishing in its journal Review of Income & Wealth.

Volume (Year): 48 (2002)
Issue (Month): 3 (September)
Pages: 395-416
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Handle: RePEc:bla:revinw:v:48:y:2002:i:3:p:395-416

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  1. Jose De Gregorio & Jong-Wha Lee, 2003. "Growth and Adjustment in East Asia and Latin America," Working Papers Central Bank of Chile 245, Central Bank of Chile. [Downloadable!]
  2. Rodríguez-Pose, Andrés & Tselios, Vassilis, 2007. "Education and Income Inequality in the Regions of the European Union," Papers DYNREG09, Economic and Social Research Institute (ESRI). [Downloadable!]
    Other versions:
  3. Heshmati, Almas, 2004. "Inequalities and Their Measurement," IZA Discussion Papers 1219, Institute for the Study of Labor (IZA). [Downloadable!]
  4. K.K.Tang & Lim, A. S. K, . "Education Inequality, Human Capital Inequality and the Kuznets Curve," MRG Discussion Paper Series 0506, School of Economics, University of Queensland, Australia. [Downloadable!]
    Other versions:
  5. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Gerardo Angeles-Castro, 2006. "The relationship between economic growth and inequality: evidence from the age of market liberalism," DEGIT Conference Papers c011_009, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  7. Coen Teuling & Thijs van Rens, 2001. "Education, Growth and Income Inequality," Economics Working Papers 942, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2006. [Downloadable!]
    Other versions:
  8. Rodríguez-Pose, Andrés & Tselios, Vassilis, 2007. "Analysis of Educational Distribution in Europe: Educational Attainment and Inequality Within Regions," Papers DYNREG08, Economic and Social Research Institute (ESRI). [Downloadable!]
  9. Andrés Rodríguez-Pose & Vassilis Tselios, 2007. "Mapping the European regional educational distribution: Educational attainment and inequality," Working Papers 2007-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales. [Downloadable!]
  10. Budria, Santiago & Telhado-Pereira, Pedro, 2005. "Educational Qualifications and Wage Inequality: Evidence for Europe," MPRA Paper 91, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  11. Gerardo Angeles-Castro, 2006. "The Relationship Between Economic Growth and Inequality: Evidence from the Age of Market Liberalism," Studies in Economics 0601, Department of Economics, University of Kent. [Downloadable!]
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