Global Inequality in a More Educated World

37 Pages Posted: 24 Jul 2017 Last revised: 4 Aug 2017

See all articles by S. Amer Ahmed

S. Amer Ahmed

World Bank

Maurizio Bussolo

World Bank - Chief Economist Office for Europe and Central Asia

Marcio Cruz

World Bank; Federal University of Parana (UFPR) - Departamento de Economia

Delfin S. Go

Development Prospects Group, The World Bank

Israel Osorio-Rodarte

World Bank

Date Written: June 30, 2017

Abstract

In developing countries, younger and better-educated cohorts are entering the workforce. This developing world-led education wave is altering the skill composition of the global labor supply, and impacting income distribution, at the national and global levels. This paper analyzes how this education wave reshapes global inequality over the long run using a general-equilibrium macro-micro simulation framework that covers harmonized household surveys representing almost 90 percent of the world population. The findings under alternative assumptions suggest that global income inequality will likely decrease by 2030. This increasing educated labor force will contribute to the closing of the gap in average incomes between developing and high income countries. The forthcoming education wave would also minimize, mainly for developing countries, potential further increases of within-country inequality.

Keywords: Educational Sciences

Suggested Citation

Ahmed, S. Amer and Bussolo, Maurizio and Cruz, Marcio and Go, Delfin S. and Osorio-Rodarte, Israel, Global Inequality in a More Educated World (June 30, 2017). World Bank Policy Research Working Paper No. 8135. Available at SSRN: https://ssrn.com/abstract=3006209

S. Amer Ahmed (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Maurizio Bussolo

World Bank - Chief Economist Office for Europe and Central Asia ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://https://blogs.worldbank.org/team/maurizio-bussolo

Marcio Cruz

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Federal University of Parana (UFPR) - Departamento de Economia ( email )

Av. Pref. Lothario Meissner, 632
Centro
Curitiba - PR, 80060-000
Brazil

Delfin S. Go

Development Prospects Group, The World Bank ( email )

1818 H Street
Washington, DC 20433
United States

Israel Osorio-Rodarte

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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