Human Capital Effects Analysis on Income in Developing Countries

Oana Rujoiu ()
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Oana Rujoiu: The Bucharest University of Economic Studies

Ovidius University Annals, Economic Sciences Series, 2022, vol. XXII, issue 2, 162-169

Abstract: The human capital theory teaches that education makes it possible to reinforce the productive potential of the labor force, which contributes to reducing the gaps between individuals' incomes. Given this conclusion, the main question that holds our attention is to know why the increase in the education level in developing countries has not led to a significant and continuous decline in income inequality. Is this downward rigidity due to the low quality of education in these countries? The main objective of this research is to show that investments in both education quantity and quality can significantly reduce the income inequality level. To achieve this objective, we reexamine the relationship between education and income inequality with a composite human capital index defined from information on education quantity and quality.

Keywords: education; income; inequalities; macroeconomics (search for similar items in EconPapers)
JEL-codes: E24 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xxii:y:2022:i:2:p:162-169

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