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Education, Inequality and Income Inequality

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Author Info
Daniele Checchi

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Abstract

In this paper we propose to measure inequality of educational achievements by constructing a Gini index on educational attainments. We then use the proposed measure to analyse the relationship between inequality in incomes and educational achievements (in terms of both the average attainments and its concentration). Even if theoretical considerations suggest a non-linear relationship between these two measures of inequality, actual data indicate that average years of education have a stronger negative impact on measured income inequality. Multivariate regressions also prove that, once we take into account the negative correlation between average educational achievement and its dispersion, the relationship between income inequality and average years of schooling is U-shaped, with a lower turning point at 6.5 years. Income inequality is also negatively related to per capita income and positively related to capital/output ratio and government expenditure in education.

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Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Distributional Analysis Research Programme Papers with number 52.

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Date of creation: May 2001
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Handle: RePEc:cep:stidar:52

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Keywords: Education inequality; income inequality; economic growth.;

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    Other versions:
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    Other versions:
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  18. repec:fth:coluec:595 is not listed on IDEAS
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  1. 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:
  2. Saccone Donatella, 2008. "Educational inequality and educational poverty. The chinese case in the period 1975-2004," Department of Economics Working Papers 200808, University of Turin. [Downloadable!]
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