Trade, Income Inequality and Investment in Education

Posted: 28 May 2008

Date Written: May 28, 2008


The strong income distributional effects of international trade and the widening wage differential between skilled and unskilled labour in developed countries have been well documented. Consequently, researchers and some policy-makers have argued that increasing sectoral labour mobility and the educational attainment of the population should be a policy priority. This paper looks at the empirical relationships between income inequality, openness, educational attainment and the regulatory framework of tertiary education in OECD countries. Specifically, the objective of the paper is to empirically assess the impact of public versus private investment in university education, tuition fees, educational subsidies and access to student loans on income inequality in a cross-sectional analysis of OECD countries while accounting for their degree of openness to international trade.

Keywords: regulatory economics, higher education, income inequality

JEL Classification: I22, H52, K29, J31

Suggested Citation

Kimakova, Alena, Trade, Income Inequality and Investment in Education (May 28, 2008). CLEA 2008 Meetings Paper. Available at SSRN:

Alena Kimakova (Contact Author)

York University ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics