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Explaining Income Inequalities in Developing Countries:the Role of Human Capital

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  • Mazhar Mughal

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Barassou Diawara

Abstract

This paper investigates the relationship between human capital and economic inequality in the developing countries. The paper analyses an unbalanced panel of 64 countries for the period 1970-2005. The results show that primary, secondary and tertiary level education is negatively associated with inequality (primary being the strongest). Besides, average years of education and government expenditure on education are also found to be inequality reducing, both in the immediate and the medium run. Thus, to give citizens better and more equal opportunities, policy-makers in the developing countries and the development agencies need to give higher importance to primary education. Prenant en considération le manque de consensus dans la littérature sur le sujet, notre article étudie la relation entre le capital humain et les inégalités économiques, en abordant le cas particulier des pays en développement ou les inégalités sont flagrantes. Nous analysons un panel non-équilibré constitué de 64 pays pour la période 1970 à 2005. Les résultats montrent une liaison négative entre l'éducation primaire, ainsi que secondaire et tertiaire, et les inégalités économiques. Les autres indicateurs du capital humain contribuent également à la réduction des inégalités. Donc, afin de réduire les inégalités économiques effectivement pour fournir aux citoyens des opportunités égales, les gouvernements des pays en développement et la communauté internationale devraient se concentrer sur l'éducation primaire et supérieur.

Suggested Citation

  • Mazhar Mughal & Barassou Diawara, 2011. "Explaining Income Inequalities in Developing Countries:the Role of Human Capital," Working papers of CATT hal-01885160, HAL.
    • Handle: RePEc:hal:wpcatt:hal-01885160
    Note: View the original document on HAL open archive server: https://hal-univ-pau.archives-ouvertes.fr/hal-01885160
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    3. Vachaspati Shukla & Udaya S. Mishra, 2020. "Expansion in Education and Its Impact on Income Inequality: Cross-sectional Evidence from India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 331-362, June.
    4. Bucevska Vesna, 2019. "Determinants of Income Inequality in EU Candidate Countries: A Panel Analysis," Economic Themes, Sciendo, vol. 57(4), pages 397-413, December.
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    6. Dagim Tadesse Bekele, 2020. "Effect of Macroeconomic, Demographic, and Governance Factors on Income Inequality of Selected sub-Saharan Africa Countries," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 9(1), pages 60-70, September.
    7. Tanti Novianti & Dian Verawati Panjaitan, 2022. "Income Inequality in Indonesia: Before and during the Covid-19 Pandemic," International Journal of Economics and Financial Issues, Econjournals, vol. 12(3), pages 29-37, May.

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