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A Comparative Analysis of Household Incomes of People with Different Levels of Education in Poland and the USA

Author

Listed:
  • Trzcińska Kamila

    (University of Lodz, Department of Statistical Methods, Poland)

  • Zalewska Elżbieta

    (University of Lodz, Department of Statistical Methods, Poland)

Abstract

Research background Household income is one of the most important economic categories depending on various factors, in particular on the level of education of the head of the household. Salaries are treated as the market valuation of graduates made by employers. Hence, the question arises of how the education system affects the distribution of household income, in particular in the group of people with higher education. Purpose The aim of the paper is to apply the Singh-Maddala model to describe the income distribution of people with primary, secondary and higher education in Poland and the USA. On the basis of numerical characteristics and measures of income inequality, the situation of education, in particular higher education, and its impact on household income in the analyzed countries were assessed. Research methodology The study used data from the Luxembourg Income Study Database (LIS) from 2020. All analyzes were based on the Singh-Maddala model. The maximum likelihood method was used to estimate the model parameters. Results The analysis showed that the higher the level of education, the better the income situation of the household. In Poland, salaries in the group of people with higher education are the most unequal, while in the USA the greatest income inequalities occur in the group of people with primary education. Novelty The paper describes the issue of household income distribution and income inequality, which is an important and current socio-economic problem. To describe and analyze the economic situation of the household incomes of people with different levels of education in Poland and the USA statistical data from the Luxembourg Income Study Database (LIS) was used. Empirical studies conducted for different samples add significantly to existing knowledge on the topic.

Suggested Citation

  • Trzcińska Kamila & Zalewska Elżbieta, 2023. "A Comparative Analysis of Household Incomes of People with Different Levels of Education in Poland and the USA," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 387-401, December.
    • Handle: RePEc:vrs:foeste:v:23:y:2023:i:2:p:387-401:n:14
    DOI: 10.2478/foli-2023-0037
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    References listed on IDEAS

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    More about this item

    Keywords

    income distribution; Singh-Maddala model; Gini index; Poland; USA; quality of education;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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