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Schooling Inequality, Returns to Schooling, and Earnings Inequality: Evidence from Brazil and South Africa

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  • David Lam
  • Arden Finn
  • Murray Leibbrandt

Abstract

Human capital models imply that both the distribution of education and returns to education affect earnings inequality. Decomposition of these 'quantity' and 'price' components have been important in understanding changes in earnings inequality in developed and developing countries. This paper provides theoretical and empirical analysis of the interactions between schooling inequality, returns to schooling and earnings inequality. We focus on two main questions. What is the relationship between inequality in schooling and inequality in earnings?

Suggested Citation

  • David Lam & Arden Finn & Murray Leibbrandt, 2015. "Schooling Inequality, Returns to Schooling, and Earnings Inequality: Evidence from Brazil and South Africa," WIDER Working Paper Series wp-2015-050, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2015-050
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    References listed on IDEAS

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    1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    2. World Bank, 2011. "A Break with History : Fifteen Years of Inequality Reduction in Latin America," World Bank Publications - Reports 2747, The World Bank Group.
    3. Ram, Rati, 1990. "Educational Expansion and Schooling Inequality: International Evidence and Some Implications," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 266-274, May.
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    Cited by:

    1. Nishijima, Marislei & Sarti, Flavia Mori & Canuto, Otaviano, 2020. "Does the Brazilian policy for oil revenues distribution foster investment in human capital?," Energy Economics, Elsevier, vol. 88(C).
    2. Roy, Pronoy & Husain, Zakir, 2019. "Education as a way to reducing inequality: Evidence from India," MPRA Paper 93907, University Library of Munich, Germany.
    3. Arden Finn & Murray Leibbrandt & Vimal Ranchhod, 2016. "Patterns of persistence: Intergenerational mobility and education in South Africa," SALDRU Working Papers 175, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Matthieu Clément & Lucie Piaser, 2022. "Geography of Income and Education Inequalities in Mexico: Evidence from Small Area Estimation and Exploratory Spatial Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 703-732, April.
    5. Arden Finn & Murray Leibbrandt, 2018. "The evolution and determination of earnings inequality in post-apartheid South Africa," WIDER Working Paper Series 83, World Institute for Development Economic Research (UNU-WIDER).
    6. Derick R. C. Almeida & João A. S. Andrade & Adelaide Duarte & Marta Simões, 2022. "Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(1), pages 145-167, January.
    7. Marcelo Neri & Cecilia Machado & Valdemar Neto, 2018. "Earnings inequality in the Brazilian formal sector: The role of firms, education, and top incomes 1994–2015," WIDER Working Paper Series 157, World Institute for Development Economic Research (UNU-WIDER).
    8. Marcelo Neri & Cecilia Machado & Valdemar Pinho Neto, 2018. "Earnings inequality in the Brazilian formal sector: The role of firms, education, and top incomes 1994-2015," WIDER Working Paper Series wp-2018-157, World Institute for Development Economic Research (UNU-WIDER).
    9. Emmanuel Maliti, 2019. "Inequality in Education and Wealth in Tanzania: A 25-Year Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 901-921, October.
    10. Arden Finn & Murray Leibbrandt, 2018. "The evolution and determination of earnings inequality in post-apartheid South Africa," WIDER Working Paper Series wp-2018-83, World Institute for Development Economic Research (UNU-WIDER).
    11. Koh, Sharon G. M. & Lee, Grace H. Y. & Siah, Audrey K. L., 2022. "The Resurgence of Income Inequality in Asia-Pacific: The Role of Trade Openness, Educational Attainment and Institutional Quality," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(3), pages 11-27.

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