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Do Schooling Years Improve the Earning Capacity of Lower Income Groups?

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  • Mamoon, Dawood

Abstract

The paper analyses the relationship between the popular Barro and Lee (2001) ‘Average years of Schooling’ with income inequality, wage inequality, and income deciles and income percentiles for the sample of developed and developing countries. The results suggest that countries where students complete higher numbers of years of schooling on average also perform better on relative incomes meaning that increase in average income comes from improvements in the earning capacity of the lower income groups or unskilled labor. The paper also finds that an educated population means that there is redistribution of income from the rich to the poor creating thriving middle class.

Suggested Citation

  • Mamoon, Dawood, 2011. "Do Schooling Years Improve the Earning Capacity of Lower Income Groups?," MPRA Paper 30511, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30511
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    References listed on IDEAS

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    1. Jean-Claude Berthélemy, 2006. "To What Extent are African Education Policies Pro-poor?," Journal of African Economies, Centre for the Study of African Economies, vol. 15(3), pages 434-469, September.
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    3. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    4. Pedro Telhado Pereira & Pedro Silva Martins, 2000. "Does education reduce wage inequality? Quantile regressions evidence from fifteen European countries," Nova SBE Working Paper Series wp379, Universidade Nova de Lisboa, Nova School of Business and Economics.
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    6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    7. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    8. Daron Acemoglu, 2001. "Human Capital Policies and the Distribution of Income: A Framework for Analysis and Literature Review," Treasury Working Paper Series 01/03, New Zealand Treasury.
    9. Pritchett, Lant, 1996. "Measuring outward orientation in LDCs: Can it be done?," Journal of Development Economics, Elsevier, vol. 49(2), pages 307-335, May.
    10. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-223, May.
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    Cited by:

    1. Dawood MAMOON, 2018. "Progressing Pakistan should ensure quality education for all," Journal of Social and Administrative Sciences, KSP Journals, vol. 5(1), pages 9-14, March.

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    More about this item

    Keywords

    Education; Inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics

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