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Human capital and income inequality revisited

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  • Amparo Castelló-Climent
  • Rafael Doménech

Abstract

This paper revisits the relationship between human capital and income inequality, using an updated data set on human capital inequality and a novel database on earnings inequality. We find an inverted U-shaped relationship between these two inequality indicators, but with significant differences across countries regarding the turning point. Skill-biased technological change is found to be an additional force that may blur the relationship between human capital and earnings inequality. Over and above the effect exerted through earnings inequality, the paper shows that human capital inequality has a direct positive effect on income inequality.

Suggested Citation

  • Amparo Castelló-Climent & Rafael Doménech, 2021. "Human capital and income inequality revisited," Education Economics, Taylor & Francis Journals, vol. 29(2), pages 194-212, March.
    • Handle: RePEc:taf:edecon:v:29:y:2021:i:2:p:194-212
    DOI: 10.1080/09645292.2020.1870936
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    Cited by:

    1. Takahiro Akita, 2023. "Revisiting educational Kuznets curve: An analysis of educational inequality based on absolute and relative inequality measures," Economics Bulletin, AccessEcon, vol. 43(1), pages 1-7.
    2. Takahiro Akita, 2024. "Educational Expansion and Educational Inequality," Working Papers EMS_2024_02, Research Institute, International University of Japan.

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