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Do schooling years improve the earning capacity of lower income groups?

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  • Dawood Mamoon

Abstract

The paper analyses the relationship between the popular Barro and Lee (2001) 'average years of schooling' with income inequality, wage inequality, and income deciles and income percentiles for the sample of developed and developing countries. The results suggest that countries where students complete higher numbers of years of schooling on average also perform better on relative incomes meaning that increase in average income comes from improvements in the earning capacity of the lower income groups or unskilled labour. The paper also finds that an educated population means that there is redistribution of income from the rich to the poor creating thriving middle class.

Suggested Citation

  • Dawood Mamoon, 2012. "Do schooling years improve the earning capacity of lower income groups?," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 3(1), pages 1-9.
    • Handle: RePEc:ids:ijeded:v:3:y:2012:i:1:p:1-9
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    References listed on IDEAS

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    7. Jean-Claude Berthélemy, 2006. "To What Extent are African Education Policies Pro-poor?," Journal of African Economies, Centre for the Study of African Economies, vol. 15(3), pages 434-469, September.
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    Cited by:

    1. Dawood MAMOON, 2018. "Progressing Pakistan should ensure quality education for all," Journal of Social and Administrative Sciences, KSP Journals, vol. 5(1), pages 9-14, March.

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    More about this item

    Keywords

    education; income inequality wage inequality; earning capacity; lower income groups; schooling years; income redistribution; educated population.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics

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