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Income Inequality and Human Capital Acquisition. What Is the Role of Educational Institutions?

In: Remodelling Businesses for Sustainable Development

Author

Listed:
  • Jakub Bartak

    (Cracow University of Economics)

  • Łukasz Jabłoński

    (Cracow University of Economics)

  • Marius Dan Gavriletea

    (Faculty of Business, Babeș-Bolyai University)

Abstract

The aim of the study is to investigate the relationship between income inequalities and human capital accumulation in OECD countries. In regards to capture the endogeneity of the variables employed we use the system generalized method of moments supported by the Sargan-Hansen test for instruments validity. Furthermore, we attempted to assess if the impact of income inequalities on the development of human capital is conditioned by the inclusivity of educational institutions. The results indicate that income inequality negatively affects human capital accumulation in countries with exclusive educational institutions. In countries where institutions are conducive to the inclusion in the process of human capital accumulation of non-privileged social groups, the investigated relationship takes the form of inverted-U.

Suggested Citation

  • Jakub Bartak & Łukasz Jabłoński & Marius Dan Gavriletea, 2023. "Income Inequality and Human Capital Acquisition. What Is the Role of Educational Institutions?," Springer Proceedings in Business and Economics, in: Adina Letiția Negrușa & Monica Maria Coroş (ed.), Remodelling Businesses for Sustainable Development, chapter 0, pages 67-83, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-19656-0_6
    DOI: 10.1007/978-3-031-19656-0_6
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