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Educational Policies and Income Inequality

Author

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  • Checchi, Daniele

    (University of Milan)

  • van de Werfhorst, Herman G.

    (University of Amsterdam)

Abstract

In this paper we study the associations between educational policies, distributions of educational attainments and income distributions. By matching inequality measures on test scores, years of education and labour earnings by country, birth cohorts and gender, we show that inequality in education (measured both at quality and quantity levels) affect earnings inequality. We then consider potential endogeneity of educational distributions and we resort to instrumental estimation using information on government reforming activity in the field of education. By controlling for country-specific and time fixed effects, and by separating age and cohorts effects, we prove that educational inequality respond to educational reforms, identifying educational policies (like later entry into compulsory education or introduction of standardised tests) capable to reduce income inequalities thirty years later.

Suggested Citation

  • Checchi, Daniele & van de Werfhorst, Herman G., 2014. "Educational Policies and Income Inequality," IZA Discussion Papers 8222, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8222
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    References listed on IDEAS

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    Cited by:

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    2. De Hoyos Navarro,Rafael E. & Holland,Peter Anthony & Troiano,Sara, 2015. "Understanding the trends in learning outcomes in Argentina, 2000 to 2012," Policy Research Working Paper Series 7518, The World Bank.
    3. Valentin F. Lang & Ms. Marina Mendes Tavares, 2018. "The Distribution of Gains from Globalization," IMF Working Papers 2018/054, International Monetary Fund.
    4. Assaad, Ragui & Krafft, Caroline, 2015. "Is free basic education in Egypt a reality or a myth?," International Journal of Educational Development, Elsevier, vol. 45(C), pages 16-30.
    5. Yousef Makhlouf & Christopher Lalley, 2023. "Education Expansion, Income Inequality and Structural Transformation: Evidence From OECD Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 255-281, September.
    6. Bettina Schuck & Nadia Steiber, 2018. "Does Intergenerational Educational Mobility Shape the Well-Being of Young Europeans? Evidence from the European Social Survey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1237-1255, October.

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    More about this item

    Keywords

    earnings inequality; test score; educational inequality; educational policies;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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