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What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth

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  • Ziesemer, Thomas

    () (UNU-MERIT, and Maastricht University)

Abstract

We are interested in the relation between Gini coefficients of education, educational variables, and growth. We specify a system of 14 difference equations with lagged dependent variables in education variables, as well as a growth regression, auxiliary equations for savings and investment ratios, and the growth of the labour force and estimate all of them simultaneously. Having a closed system of 18 equations we run simulations, which show that for the panel average enrolment in tertiary education will go beyond 90%, and therefore drive transitional growth rates and average years of schooling to high levels and reduce inequality over time. This will be achieved by reductions in gender gaps, higher enrolment rates, and lower dropout rates, lower pupil-teacher ratios and higher public expenditure on education. There are no simple one-way causalities. Policies enhancing savings ratios and enrolment in tertiary education have the largest effects through the whole system.

Suggested Citation

  • Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2011053
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    File URL: https://www.merit.unu.edu/publications/wppdf/2011/wp2011-053.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Huub Meijers, 2014. "Does the internet generate economic growth, international trade, or both?," International Economics and Economic Policy, Springer, vol. 11(1), pages 137-163, February.
    2. Thomas H.W. Ziesemer, 2014. "Country terms of trade: trends, unit roots, over-differencing, endogeneity, time dummies, and heterogeneity," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(6), pages 767-796, September.
    3. Thomas H.W. ZIESEMER, 2012. "Worker remittances and government behaviour in the receiving countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 37-59, December.
    4. Ziesemer, Thomas, 2012. "The impact of development aid on education and health: Survey and new evidence from dynamic models," MERIT Working Papers 057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Gini coefficients; education; growth; simultaneous equation system;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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