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Do Schooling Years Improve the Earning Capacity of Lower Income Groups?

  • Mamoon, Dawood

The paper analyses the relationship between the popular Barro and Lee (2001) ‘Average years of Schooling’ with income inequality, wage inequality, and income deciles and income percentiles for the sample of developed and developing countries. The results suggest that countries where students complete higher numbers of years of schooling on average also perform better on relative incomes meaning that increase in average income comes from improvements in the earning capacity of the lower income groups or unskilled labor. The paper also finds that an educated population means that there is redistribution of income from the rich to the poor creating thriving middle class.

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File URL: https://mpra.ub.uni-muenchen.de/30511/1/MPRA_paper_30511.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30511.

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Date of creation: 26 Apr 2011
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Handle: RePEc:pra:mprapa:30511
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  1. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
  2. Jean-Claude Berthélemy, 2006. "To What Extent are African Education Policies Pro-poor?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(3), pages 434-469, September.
  3. Pereira, Pedro Telhado & Martins, Pedro Silva, 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," FEUNL Working Paper Series wp379, Universidade Nova de Lisboa, Faculdade de Economia.
  4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  5. Daron Acemoglu, 2001. "Human Capital Policies and the Distribution of Income: A Framework for Analysis and Literature Review," Treasury Working Paper Series 01/03, New Zealand Treasury.
  6. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-98, March.
  7. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-23, May.
  8. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
  9. Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
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