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The Ranking of Inequality in Human Capital: Evidence from Asian Countries

  • Jirada Prasartpornsirichoke

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Yoshi Takahashi

    (Graduate School for International Development and Cooperation, Hiroshima University)

  • Peera Charoenporn

    (Faculty of Economics, Thammasat University)

The objective of this paper is to investigate that the international cross-sectional comparison of inequalities in human capital and education among 16 Asian countries. More specifically we employed the order-ranking of Gini coefficients that is workable in empirical studies as well as that of Lorenz curves sequenced from basic pairwise Lorenz dominance comparisons of 240 cases. The latter is provided as an alternative measure of education and human capital distribution in comparison with the former measure. Our major finding is rank correlation coefficients between both measures of both inequalities are high and significant but not unity. At least in this data set, the rankings of inequalities in education and human capital from two measures are able to apply in empirics. Gini index of both inequalities were calculated from Cohen & Soto's educational attainment data-set during 1960-2010; ten-year interval period. Data obtained from these Asian countries is computed to confirm the relationship education, human capital, and their inequalities. We found the negative linear relationship between average years of schooling and its Gini while the relationship between stock of human capital and its Gini becomes inverted-U shape curve.

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File URL: http://ir.lib.hiroshima-u.ac.jp/files/public/33597/20141016193949159982/IDEC-DP2_02-14.pdf
File Function: First version, 2012
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Paper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 2-14.

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Length: 31 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:hir:idecdp:2-14
Contact details of provider: Web page: http://www.hiroshima-u.ac.jp/en/idec/

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  1. Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
  2. Winegarden, C R, 1979. "Schooling and Income Distribution: Evidence from International Data," Economica, London School of Economics and Political Science, vol. 46(181), pages 83-87, February.
  3. Chiswick, Barry R, 1971. "Earnings Inequality and Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 85(1), pages 21-39, February.
  4. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  5. Zhang, Junsen & Li, Tianyou, 2002. "International Inequality and Convergence in Educational Attainment, 1960-1990," Review of Development Economics, Wiley Blackwell, vol. 6(3), pages 383-92, October.
  6. Audrey Siew Kim LIM & Kam Ki TANG, 2008. "Human Capital Inequality And The Kuznets Curve," The Developing Economies, Institute of Developing Economies, vol. 46(1), pages 26-51.
  7. Psacharopoulos, George, 1977. "Schooling, experience and earnings : The case of an LDC," Journal of Development Economics, Elsevier, vol. 4(1), pages 39-48, February.
  8. Bishop, John A & Formby, John P & Smith, W James, 1991. "International Comparisons of Income Inequality: Tests for Lorenz Dominance across Nine Countries," Economica, London School of Economics and Political Science, vol. 58(232), pages 461-77, November.
  9. Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Educational Studies, Higher School of Economics, issue 1, pages 154-193.
  10. Ram, Rati, 1984. "Population increase, economic growth, educational inequality, and income distribution : Some recent evidence," Journal of Development Economics, Elsevier, vol. 14(3), pages 419-428, April.
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