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Inequality in Income and Access to Education: A Cross-Country Analysis

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  • Checchi, Daniele

Abstract

In the current debate on the relationship between inequality in income distribution and growth one of the possible link works through the access to education. After reviewing this debate, a formal model shows how the imperfection of financial markets makes educational choices dependent on the distribution of family incomes. This leads to two testable predictions in the analysis of aggregate data on school enrolments: a negative (linear) relation with the Gini coefficient on incomes distribution; and a positive dependence on public resources invested in education and/or on skill premium in the labour market. These predictions are then tested on a (unbalanced) panel of 102 countries for the period 1960-90. The main findings of this analysis are that, once we control for the degree of development with the (log of) per capita output, financial constraints seem mainly relevant in limiting the access to secondary education. However, when considering gender differences, there is evidence that female participation in education is more strongly conditioned by family wealth, starting from primary education. On the contrary there is no clear evidence of a relevant impact of invested resources, but at the tertiary level.

Suggested Citation

  • Checchi, Daniele, "undated". "Inequality in Income and Access to Education: A Cross-Country Analysis," WIDER Working Papers 295483, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:ags:widerw:295483
    DOI: 10.22004/ag.econ.295483
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    Cited by:

    1. Valentino Larcinese, 2008. "A Discrepancy Index for the Study of Participation with an Application to the Case of Higher Education in Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(3), pages 483-496, September.
    2. Emanuela Ghignoni, 2005. "Household income, family composition and human capital in Southern Italy," Working Papers in Public Economics 78, Department of Economics and Law, Sapienza University of Roma.
    3. Checchi, Daniele, 2001. "Education, inequality and income inequality," LSE Research Online Documents on Economics 6566, London School of Economics and Political Science, LSE Library.

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    Keywords

    International Development;

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