Skinning the Cat: Education Distribution, Changes in the School Premium and Earnings Inequality
AbstractThis paper applies the procedure in JUHN ET ALL (1993) to decompose changes in income inequality over time in terms of education-related causal factors: school premiums, educational distribution and residual changes. The main conclusion is that reductions in the school premiums have systematically had a negative impact on income inequality during the last twenty years. At the same time, education has become more unequally distributed for individuals below the median labor income level and more equally distributed for those above it. The combination of the two forces has reduced income dispersion for the top half of earners, and slightly increased it among the bottom half. This difference in trends of educational distribution lies behind an apparently stable profile of income inequality (considering the whole earnings distribution).
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Bibliographic InfoPaper provided by Economics Research Group, IBMEC Business School - Rio de Janeiro in its series IBMEC RJ Economics Discussion Papers with number 2005-03.
Date of creation: 30 Nov 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-09 (All new papers)
- NEP-EDU-2005-12-09 (Education)
- NEP-HRM-2005-12-09 (Human Capital & Human Resource Management)
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