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How can education policy improve income distribution? an empirical analysis of education stages and measures on income inequality

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  • Katarina R.I. Keller

    (Susquehanna University, USA)

Abstract

This paper examines the individual effects of primary, secondary and higher education on income distribution, using different measures of investment rates in education: enrollment rates, public expenditures and public expenditures per student, in each education stage. The panel data method is utilized in estimating the effects of different stages and measures of investment rates in education on income inequality across countries and among sample splits for developed and less developed countries since 1960. The results reveal that expenditures per student in primary education highly significantly improve income distribution especially globally and for less developed countries. Moreover, secondary education, for enrollment rates, and public expenditures particularly among already developed countries, has statistically significant equalizing effects. These results imply that education policy would improve income distribution by ensuring that expenditures per student in primary school are kept up with increases in student cohorts, and by promoting enrollment in secondary education.

Suggested Citation

  • Katarina R.I. Keller, 2010. "How can education policy improve income distribution? an empirical analysis of education stages and measures on income inequality," Journal of Developing Areas, Tennessee State University, College of Business, vol. 43(2), pages 51-77, January-M.
    • Handle: RePEc:jda:journl:vol.43:year:2010:issue2:pp:51-77
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    Citations

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    Cited by:

    1. Monica P. Lambon-Quayefio & Robert D. Osei & Abena D. Oduro & Isaac Osei Akoto, 2020. "Understanding the relationship between Consumption Inequality, Inequality of Opportunity and Education Outcomes in Ghana," Working Paper 7fb837eb-0c6e-4b0e-973b-7, Agence française de développement.
    2. Vincenzo Prete & Claudio Zoli, 2019. "The political economy of educational policies and inequality of opportunity," Working Papers 2019:14, Department of Economics, University of Venice "Ca' Foscari".
    3. Tarkan Cavusoglu & Oguzhan Dincer, 2019. "Schooling and income inequality in the long-run," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 43(3), pages 594-606, July.
    4. Aaron Baugh & Reginald F. Baugh, 2020. "Assessment of Diversity Outcomes in American Medical School Admissions: Applying the Grutter Legitimacy Principles," Sustainability, MDPI, vol. 12(12), pages 1-17, June.
    5. Dorji Lethro & Takahiro Akita, 2016. "Education and Expenditure Inequality in Bhutan: An Analysis based on 2007 and 2012 Household Survey Data," Working Papers EMS_2016_12, Research Institute, International University of Japan.
    6. Ulu, Mustafa Ilker, 2018. "The effect of government social spending on income inequality in oecd: a panel data analysis," MPRA Paper 91104, University Library of Munich, Germany.

    More about this item

    Keywords

    Income distribution; income inequality; education; enrollment rates; public education expenditures;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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