Human Capital and Income Inequality: Some Facts and Some Puzzles
AbstractUsing a broad number of indicators from an updated data set on human capital inequality for 146 countries from 1950 to 2010, this paper documents several facts regarding the evolution of income and human capital inequality. The main findings reveal that, in spite of a large reduction in human capital inequality around the world driven by a decline in the number of illiterates of several hundreds of millions of people, the inequality in the distribution of income has hardly changed. In many regions, the income Gini coefficient in 1960 was very similar to that in 2005. Therefore, improvements in literacy are not a sufficient condition to reduce income inequality, even though they improve life standards of people at the bottom of the income distribution. Increasing returns to education, external effects on wages of higher literacy rates or the simultaneous concurrence of other exogenous forces (e.g., globalization or skill-biased technological progress) may explain the lack of correlation between the evolution of income andeducation inequality.
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Bibliographic InfoPaper provided by BBVA Bank, Economic Research Department in its series Working Papers with number 1228.
Length: 39 pages
Date of creation: Nov 2012
Date of revision:
Distribution of education; income inequality; human development; panel data;
Other versions of this item:
- Amparo Castelló-Climent & Rafael Doménech, 2012. "Human Capital and Income Inequality: Some Facts and Some Puzzles," Working Papers 1201, International Economics Institute, University of Valencia.
- I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-10 (All new papers)
- NEP-DEV-2012-12-10 (Development)
- NEP-HIS-2012-12-10 (Business, Economic & Financial History)
- NEP-LAB-2012-12-10 (Labour Economics)
- NEP-PBE-2012-12-10 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Javier Alonso & Jasmina Bjeletic & Soledad Hormazabal & Carolina Romero & Carlos Herrera & Ivonne Ordonez & David Tuesta, 2009. "Proyecciones del impacto de los fondos de pensiones en la inversion en infraestructura y el crecimiento en Latinoamerica," Working Papers 0921, BBVA Bank, Economic Research Department.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The puzzling evolution of income inequality
by Economic Logician in Economic Logic on 2013-01-07 15:47:00
- Inequality: power vs human capital
by chris dillow in Stumbling and Mumbling on 2012-12-15 13:17:23
- 'Inequality: Power vs. Human Capital'
by Mark Thoma in Economist's View on 2012-12-15 11:10:46
- A case for inequality?
by chris dillow in Stumbling and Mumbling on 2013-05-08 12:20:03
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