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Tertiary Education for All and Wage Inequality: Policy Insights from Quantile Regression

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  • Andini, Corrado

    () (University of Madeira)

Abstract

Wage inequality is a highly debated topic in policy and academic circles. Policy makers typically consider that a policy promoting the equalization of education levels among the individuals of a society – pushing everybody towards tertiary education – is a good strategy to fight wage inequality. Academics are more pessimistic. This article stresses that a policy of "tertiary education for all" does not necessarily reduce the overall level of wage inequality. It may reduce wage inequality due to differences in education levels among individuals, but it may also increase wage inequality due to differences in unobserved abilities among individuals.

Suggested Citation

  • Andini, Corrado, 2017. "Tertiary Education for All and Wage Inequality: Policy Insights from Quantile Regression," IZA Policy Papers 132, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izapps:pp132
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    More about this item

    Keywords

    education policy; wage inequality; quantile regression;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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