IDEAS home Printed from https://ideas.repec.org/a/vrs/ecobur/v6y2020i4p27-50n3.html
   My bibliography  Save this article

Income gaps: Education and inequality

Author

Listed:
  • Leone Julián

    (Universidad de Buenos Aires, Facultad de Ciencias Económicas, Av. Córdoba 2122, Ciudad de Buenos Aires, Argentina)

  • Cascio Jorge Lo

    (Universidad de Buenos Aires, Escuela Técnica, Av. Roca y Av. Larrazábal, Ciudad de Buenos Aires, Argentina.)

Abstract

The aim of this paper is to analyze the employment-related real income gaps according to the education level reached by the working population during the 1997–2017 period. Using a panel methodology (pseudo-cohorts) it sums up that throughout recession, employment-related real income gaps by education level are wider, amplifying income inequality. During the economic boom the narrowing of the gap was due to the weak growth in skilled employment that did not manage to recover the pre-crisis values. This phenomenon is typical of a labour market structure with less skilled employment demand than its increasing supply. The employment-related difference in reduction of the real income gaps is exclusively reflected by a decline in employees from the highest education segment. The whole of tertiary education although with less intensity, replicates its trend. Not only educational credentials increase future employment-related income but also starting then not completing a university degree provides a significant disparity. Gender control shows a sharp drop in its determination.

Suggested Citation

  • Leone Julián & Cascio Jorge Lo, 2020. "Income gaps: Education and inequality," Economics and Business Review, Sciendo, vol. 6(4), pages 27-50, December.
    • Handle: RePEc:vrs:ecobur:v:6:y:2020:i:4:p:27-50:n:3
    DOI: 10.18559/ebr.2020.4.3
    as

    Download full text from publisher

    File URL: https://doi.org/10.18559/ebr.2020.4.3
    Download Restriction: no
    File URL: https://libkey.io/10.18559/ebr.2020.4.3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul Beaudry & David A. Green & Benjamin M. Sand, 2016. "The Great Reversal in the Demand for Skill and Cognitive Tasks," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 199-247.
    2. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    3. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
    4. Blaug, Mark, 1985. "Where are we now in the economics of education?," Economics of Education Review, Elsevier, vol. 4(1), pages 17-28, February.
    5. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    6. Luis BECCARIA & Roxana MAURIZIO, 2020. "Labour market turnover in Latin America: How intensive is it and to what extent does it differ across countries?," International Labour Review, International Labour Organization, vol. 159(2), pages 161-193, June.
    7. Dilip Mookherjee & Debraj Ray, 2022. "Growth, Automation and the Long-Run Share of Labor," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 46, pages 1-26, October.
    8. Daron Acemoglu & David Autor & David Dorn & Gordon H. Hanson & Brendan Price, 2014. "Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing," American Economic Review, American Economic Association, vol. 104(5), pages 394-399, May.
    9. Altimir, Oscar & Beccaría, Luis Alberto, 1999. "Distribución del ingreso en la Argentina," Series Históricas 7502, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Hanushek, Eric A. & Woessmann, Ludger, 2015. "The Knowledge Capital of Nations: Education and the Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029170, April.
    11. Dilip Mookherjee & Debraj Ray, 2022. "Growth, Automation and the Long-Run Share of Labor," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 46, pages 1-26, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mammadova, Nigar & Aypay, Ahmet, 2023. "Syrian refugee students’ sense of school belonging and educational aspirations," International Journal of Educational Development, Elsevier, vol. 102(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Jia & Pei, Yu & Qiang, Wei, 2024. "The impact of automation on human capital investment," Finance Research Letters, Elsevier, vol. 62(PB).
    2. Thor Berger & Carl Benedikt Frey, 2016. "Structural Transformation in the OECD: Digitalisation, Deindustrialisation and the Future of Work," OECD Social, Employment and Migration Working Papers 193, OECD Publishing.
    3. Mario Reinhold & Stephan Thomsen, 2017. "The changing situation of labor market entrants in Germany [Die veränderliche Situation für Berufseinsteiger in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 161-174, August.
    4. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    5. Thomsen, Stephan L, 2018. "Die Rolle der Computerisierung und Digitalisierung für Beschäftigung und Einkommen," Hannover Economic Papers (HEP) dp-645, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    6. Yuki, Kazuhiro, 2012. "Mechanization, task assignment, and inequality," MPRA Paper 37754, University Library of Munich, Germany.
    7. Consoli, Davide & Marin, Giovanni & Rentocchini, Francesco & Vona, Francesco, 2023. "Routinization, within-occupation task changes and long-run employment dynamics," Research Policy, Elsevier, vol. 52(1).
    8. Gallipoli, Giovanni & Makridis, Christos A., 2018. "Structural transformation and the rise of information technology," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 91-110.
    9. Naude, Wim, 2019. "The race against the robots and the fallacy of the giant cheesecake: Immediate and imagined impacts of artificial intelligence," MERIT Working Papers 2019-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Georg Graetz & Guy Michaels, 2018. "Robots at Work," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 753-768, December.
    11. Lyu, Wenjing & Liu, Jin, 2021. "Soft skills, hard skills: What matters most? Evidence from job postings," Applied Energy, Elsevier, vol. 300(C).
    12. Seth G. Benzell & Laurence J. Kotlikoff & Guillermo LaGarda & Jeffrey D. Sachs, 2015. "Robots Are Us: Some Economics of Human Replacement," NBER Working Papers 20941, National Bureau of Economic Research, Inc.
    13. Capello, Roberta & Lenzi, Camilla & Perucca, Giovanni, 2022. "The modern Solow paradox. In search for explanations," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 166-180.
    14. Bachmann, Ronald & Stepanyan, Gayane, 2020. "It's a Woman's World? Occupational Structure and the Rise of Female Employment in Germany," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224626, Verein für Socialpolitik / German Economic Association.
    15. Du, Longzheng & Lin, Weifen, 2022. "Does the application of industrial robots overcome the Solow paradox? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    16. Antonios Garas & Sophie Guthmuller & Athanasios Lapatinas, 2021. "The development of nations conditions the disease space," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-35, January.
    17. Jiaqi Li & Anna Valero & Guglielmo Ventura, 2020. "Trends in job-related training and policies for building future skills into the recovery," CVER Research Papers 033, Centre for Vocational Education Research.
    18. Wang, Linhui & Cao, Zhanglu & Dong, Zhiqing, 2023. "Are artificial intelligence dividends evenly distributed between profits and wages? Evidence from the private enterprise survey data in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 342-356.
    19. Luigi Marengo, 2019. "Is this time different? A note on automation and labour in the fourth industrial revolution," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(3), pages 323-331, September.
    20. Cirillo, Valeria & Evangelista, Rinaldo & Guarascio, Dario & Sostero, Matteo, 2021. "Digitalization, routineness and employment: An exploration on Italian task-based data," Research Policy, Elsevier, vol. 50(7).

    More about this item

    Keywords

    education; inequality; human capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecobur:v:6:y:2020:i:4:p:27-50:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.