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Education, Inequality and Income Inequality

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  • Daniele Checchi

Abstract

In this paper we propose to measure inequality of educational achievements by constructing a Gini index on educational attainments. We then use the proposed measure to analyse the relationship between inequality in incomes and educational achievements (in terms of both the average attainments and its concentration). Even if theoretical considerations suggest a non-linear relationship between these two measures of inequality, actual data indicate that average years of education have a stronger negative impact on measured income inequality. Multivariate regressions also prove that, once we take into account the negative correlation between average educational achievement and its dispersion, the relationship between income inequality and average years of schooling is U-shaped, with a lower turning point at 6.5 years. Income inequality is also negatively related to per capita income and positively related to capital/output ratio and government expenditure in education.

Suggested Citation

  • Daniele Checchi, 2001. "Education, Inequality and Income Inequality," STICERD - Distributional Analysis Research Programme Papers 52, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  • Handle: RePEc:cep:stidar:52
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    Cited by:

    1. Bruno Martorano & Marco Sanfilippo, 2015. "Structural Change and Wage Inequality in the Manufacturing Sector: Long Run Evidence from East Asia," Oxford Development Studies, Taylor & Francis Journals, vol. 43(2), pages 212-231, June.
    2. Saccone Donatella, 2011. "Potenze economiche emergenti: Cina e India a confronto.Istruzione e diseguaglianze," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201113, University of Turin.
    3. K.K.Tang & Lim, A. S. K, "undated". "Education Inequality, Human Capital Inequality and the Kuznets Curve," MRG Discussion Paper Series 0506, School of Economics, University of Queensland, Australia.
    4. Checchi, Daniele & Garcia-Penalosa, Cecilia, 2004. "Risk and the distribution of human capital," Economics Letters, Elsevier, vol. 82(1), pages 53-61, January.
    5. João Gabriel Fidalgo & Marta Simões & Adelaide Duarte, 2010. "Mind the Gap: Education Inequality at the Regional Level in Portugal, 1986-2005," Notas Económicas, Faculty of Economics, University of Coimbra, issue 32, pages 22-43, December.
    6. Saccone Donatella, 2008. "Educational Inequality and Educational Poverty. the Chinese Case in the Period 1975-2004," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200808, University of Turin.
    7. repec:eee:ecmode:v:71:y:2018:i:c:p:247-262 is not listed on IDEAS

    More about this item

    Keywords

    Education inequality; income inequality; economic growth.;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative

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