Education and Income Inequality: New Evidence from Cross-Country Data
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.
Volume (Year): 48 (2002)
Issue (Month): 3 (September)
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