Education and Income Inequality: New Evidence From Cross‐Country Data

2002/09/01 by José De Gregorio, Jong‐Wha Lee, Jong–Wha Lee · 1 citation
Social Sciences · Economics, Econometrics and Finance · #Income, Poverty, and Inequality #Intergenerational and Educational Inequality Studies #Economic Theory and Policy

paper · doi:10.1111/1475-4991.00060

Abstract

This paper presents empirical evidence on how education is related to income distribution in a panel data set covering a broad range of countries for the period between 1960 and 1990. The findings indicate that educational factors—higher educational attainment and more equal distribution of education —play a significant role in making income distribution more equal. The results also confirm the Kuznets inverted–U curve for the relationship between income level and income inequality. We also find that government social expenditure contributes to more equal distribution of income. However, a significant proportion of cross–country variation in income inequality remains unexplained.

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