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Analysis of the impact of school performance on income inequality in the long run: An application to Chilean municipalities

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  • Yeycol Leiva
  • Gabriel Pino

Abstract

High income inequality has become a barrier to economic development for emerging economies. Education is commonly seen as a way to decrease income inequality; however, the empirical evidence is not convincing. By focusing on school performance, we take advantage of spatial econometrics to estimate a long‐run relationship showing that income inequality can be reduced by increases in school performance. In particular, our results show that increases in school performance at early stages of educational levels and using mathematics as the subject goal can decrease income inequality in the long run. We use the case of Chile, which presents high income inequality and low school performance compared to similar nations.

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  • Yeycol Leiva & Gabriel Pino, 2020. "Analysis of the impact of school performance on income inequality in the long run: An application to Chilean municipalities," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1045-1080, September.
    • Handle: RePEc:bla:growch:v:51:y:2020:i:3:p:1045-1080
    DOI: 10.1111/grow.12413
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