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The Determinants of Income Inequality: The Role of Education

Author

Listed:
  • Anna Hovhannisyan
  • Ramon A. Castillo-Ponce
  • Rolando I. Valdez

Abstract

The economics literature reports mixed evidence on the importance of education as a determinant of income inequality. In this document we shed light on the debate by testing this relationship for a sample of developing and developed countries from 1990 to 2014. We control for country specific characteristics including trade openness, unemployment, foreign direct investment, and the share of elderly population. The results of robust panel data estimations unequivocally find that education is negatively and significantly associated with income inequality. JEL Codes - O1; O15; O57

Suggested Citation

  • Anna Hovhannisyan & Ramon A. Castillo-Ponce & Rolando I. Valdez, 2019. "The Determinants of Income Inequality: The Role of Education," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 66(4), pages 451-464, December.
    • Handle: RePEc:aic:saebjn:v:66:y:2019:i:4:p:451-464:n:164
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    References listed on IDEAS

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    More about this item

    Keywords

    education; income inequality; robust estimation;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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