Income Inequality, TFP, and Human Capital

Tiago Sequeira, Marcelo Santos and Alexandra Lopes ()

MPRA Paper from University Library of Munich, Germany

Abstract: A fruitful recent theoretical literature has related human capital and technological development with income (and wages) inequality. However, empirical assessments on the relationship are still scarce. We relate human capital and total factor productivity (TFP) with inequality and discover that, when countries are assumed as heterogeneous and dependent cross-sections, human capital is the most robust determinant of inequality, contributing to increase inequality, as predicted by theory. There is evidence of great heterogeneity on the effects of TFP and Openness across countries. These new empirical results open a wide avenue for theoretical research on the country-specific features conditioning the causal relationship from human capital, technology and trade to inequality.

Keywords: income inequality; human capital; technology (search for similar items in EconPapers)
JEL-codes: I24 I32 O10 O33 O50 (search for similar items in EconPapers)
Date: 2014-03-29
New Economics Papers: this item is included in nep-gro, nep-hrm and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Income Inequality, TFP, and Human Capital (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:55471

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