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Human Capital Inequality And The Kuznets Curve

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  • Audrey Siew Kim LIM
  • Kam Ki TANG

Abstract

This paper develops a Mincerian measure of human capital distribution and applies it to evaluate national and global human capital inequality and compare them with education inequality measures. It is shown that using education inequality as a proxy of human capital inequality is problematic due to the nonmonotonic relationship between them. We find that the inconsistent evidence on education and human capital Kuznets curves in the literature is due to the use of different inequality measures. In particular, human capital Kuznets curves are evident when relative inequality measures are used, whereas education Kuznets curves are found when absolute inequality measures are used. It is also observed that while global education inequality has been declining over the past four decades, global human capital inequality remains largely steady, as the decrease in between‐country human capital inequality is largely balanced by the increase in within‐country human capital inequality.

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  • Audrey Siew Kim LIM & Kam Ki TANG, 2008. "Human Capital Inequality And The Kuznets Curve," The Developing Economies, Institute of Developing Economies, vol. 46(1), pages 26-51, March.
    • Handle: RePEc:bla:deveco:v:46:y:2008:i:1:p:26-51
    DOI: 10.1111/j.1746-1049.2007.00054.x
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    1. Wada, Shuhei, 2021. "Online education and the Great Convergence," MPRA Paper 108793, University Library of Munich, Germany.
    2. Derick R. C. Almeida & João A. S. Andrade & Adelaide Duarte & Marta Simões, 2022. "Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(1), pages 145-167, January.
    3. Wail BENAABDELAALI & Maurice CATIN, 2018. "Les inégalités d’éducation : une nouvelle base mondiale (1950-2015)," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 47, pages 97-124.
    4. Matsuo, Miki & Tomoda, Yasunobu, 2012. "Human capital Kuznets curve with subsistence consumption level," Economics Letters, Elsevier, vol. 116(3), pages 392-395.
    5. Ralph Hippe & Roger Fouquet, 2024. "The Human Capital Transition and the Role of Policy," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 411-457, Springer.
    6. Vachaspati Shukla & Udaya S. Mishra, 2019. "Educational Expansion and Schooling Inequality: Testing Educational Kuznets Curve for India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1265-1283, February.
    7. Takahiro Akita, 2023. "Revisiting educational Kuznets curve: An analysis of educational inequality based on absolute and relative inequality measures," Economics Bulletin, AccessEcon, vol. 43(1), pages 1-7.
    8. Thomas Ziesemer, 2022. "Global Dynamics of Gini Coefficients of Education for 146 Countries: Update to 1950-2015 and a Compact Guide to the Literature," Bulletin of Applied Economics, Risk Market Journals, vol. 9(1), pages 85-95.
    9. Jirada Prasartpornsirichoke & Yoshi Takahashi & Peera Charoenporn, 2012. "The Ranking of Inequality in Human Capital: Evidence from Asian Countries," IDEC DP2 Series 2-14, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    10. Vujica Lazović & Milorad Jovović & Tamara Backović & Tamara Djuričković & Biljana Rondović, 2022. "Is Digital Economy a Good Samaritan to Developing Countries?," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    11. IBOURK, Aomar & AMAGHOUSS, Jabrane, 2015. "Inequality In Education In The Mena Region: A Macroeconometric Investigation Using Normative Indicators," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 129-146.
    12. João Gabriel Fidalgo & Marta Simões & Adelaide Duarte, 2010. "Mind the Gap: Education Inequality at the Regional Level in Portugal, 1986-2005," Notas Económicas, Faculty of Economics, University of Coimbra, issue 32, pages 22-43, December.
    13. Jamel TRABELSI & Levent UNSALDI & Jean-Claude VEREZ, 2011. "Les Inegalites Dans Le Domaine De L’Education En Turquie," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 34, pages 113-139.
    14. Khusaini, & Remi, Sutyastie Soemitro & Fahmi, Mohamad & Purnagunawan, R. Muhamad, 2020. "Measuring the Inequality in Education: Educational Kuznets Curve," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(3), pages 59-76.
    15. IBOURK, Aomar & AMAGHOUSS, Jabrane, 2014. "The Performance Of Educational System In Morocco: A Spatial Analysis," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    16. Nadia Hanif & Noman Arshed & Osama Aziz, 2020. "On interaction of the energy: Human capital Kuznets curve? A case for technology innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7559-7586, December.
    17. Annim, Samuel Kobina & Dasmani, Isaac, 2010. "The joint effect of human capital and income inequalities on HIV/AIDS prevalence: An exploratory investigation," MPRA Paper 21251, University Library of Munich, Germany.
    18. Mine Yilmazer & Serkan inar, 2015. "Human Capabilities and Economic Growth: A Comparative Human Capability Index," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 843-853.
    19. Nil Demet GUNGOR, 2010. "Education, Human Capital Inequality And Economic Growth: Evidence From Turkey," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(2).
    20. Guarini, Giulio & Laureti, Tiziana & Garofalo, Giuseppe, 2018. "Territorial and individual educational inequality: A Capability Approach analysis for Italy," Economic Modelling, Elsevier, vol. 71(C), pages 247-262.
    21. Dennis Petrie & Kam Ki Tang, 2008. "A Rethink on Measuring Health Inequalities Using the Gini Coefficient," Discussion Papers Series 381, School of Economics, University of Queensland, Australia.
    22. Aomar Ibourk & Jabrane Amaghouss, 2016. "The dynamics of the reduction of educational inequalities in Africa: an approach by the Kuznets curve - a comparative analysis of the trajectories of anglophone, francophone and Arabic countries," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 5(2), pages 119-136.
    23. Brandon PARSONS, 2023. "Panel Data Analysis Of The Human Capital Index And Income Inequality: A Panel Of 203 Countries For The Period 1988-2018," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(1), pages 5-32.
    24. Takahiro Akita, 2024. "Educational Expansion and Educational Inequality," Working Papers EMS_2024_02, Research Institute, International University of Japan.

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