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Education and Income Inequality: New Evidence From Cross‐Country Data

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  • José De Gregorio
  • Jong–Wha Lee

Abstract

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.

Suggested Citation

  • José De Gregorio & Jong–Wha Lee, 2002. "Education and Income Inequality: New Evidence From Cross‐Country Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 395-416, September.
  • Handle: RePEc:bla:revinw:v:48:y:2002:i:3:p:395-416
    DOI: 10.1111/1475-4991.00060
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    References listed on IDEAS

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