Education, inequality and income inequality

Checchi, Daniele (2001) Education, inequality and income inequality. DARP (52). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

In this paper we propose to measure inequality of educational achievements by constructing a Gini index on educational attainments. We then use the proposed measure to analyse the relationship between inequality in incomes and educational achievements (in terms of both the average attainments and its concentration). Even if theoretical considerations suggest a non-linear relationship between these two measures of inequality, actual data indicate that average years of education have a stronger negative impact on measured income inequality. Multivariate regressions also prove that, once we take into account the negative correlation between average educational achievement and its dispersion, the relationship between income inequality and average years of schooling is U-shaped, with a lower turning point at 6.5 years. Income inequality is also negatively related to per capita income and positively related to capital/output ratio and government expenditure in education.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://sticerd.lse.ac.uk
Additional Information:	© 2001 Daniele Checchi
Divisions:	STICERD
Subjects:	H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HD Industries. Land use. Labor L Education > L Education (General)
JEL classification:	I - Health, Education, and Welfare > I2 - Education > I20 - General J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Income, and Wealth > N30 - Economic History: Labor and Consumers, Demography, Education, Health, Income and Wealth: General, International, or Comparative (Migration)
Date Deposited:	07 Jul 2008 10:00
Last Modified:	11 Dec 2024 18:30
URI:	http://eprints.lse.ac.uk/id/eprint/6566

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