Education, Economic Growth and Measured Income Inequality

Günther Rehme

No 428, LIS Working papers from LIS Cross-National Data Center in Luxembourg

Abstract: In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when measured by the Gini coefficient. There is no clear functional relationship between growth and measured income inequality. The model identifies regimes of this relationship which depend crucially on the production and schooling technology. Conventional growth regressions with human capital and inequality as regressors may miss the richness of the underlying nonlinearities, but viewed as approximations may still provide important information on the nonlinear relationship between growth and education.

Pages: 40 pages
Date: 2006-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Economica 74, (2007): 493-514

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http://www.lisdatacenter.org/wps/liswps/428.pdf (application/pdf)

Related works:
Working Paper: Education, Economic Growth and Measured Income Inequality (2008)
Journal Article: Education, Economic Growth and Measured Income Inequality (2007)
Working Paper: Education, Economic Growth and Measured Income Inequality (2007)
Working Paper: Education, Economic Growth and Measured Income Inequality (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:lis:liswps:428

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