Education and Income Inequality: New Evidence from Cross-Country Data

22 Pages Posted: 7 Nov 2003

See all articles by Jose de Gregorio

Jose de Gregorio

Central Bank of Chile; Universidad de Chile; National Bureau of Economic Research (NBER)

Jong-Wha Lee

Korea University

Abstract

This paper presents empirical evidence on how education is related to income distribution in a panel data set covering a broad range of countries for the period between 1960 and 1990. The findings indicate that educational factors - higher educational attainment and more equal distribution of education - play a significant role in making income distribution more equal. The results also confirm the Kuznets inverted-U curve for the relationship between income level and income inequality. We also find that government social expenditure contributes to more equal distribution of income. However, a significant proportion of cross-country variation in income inequality remains unexplained.

Suggested Citation

de Gregorio, Jose and Lee, Jong-Wha, Education and Income Inequality: New Evidence from Cross-Country Data. Review of Income and Wealth, Vol. 48, pp. 395-416, 2002. Available at SSRN: https://ssrn.com/abstract=325165

Jose De Gregorio (Contact Author)

Central Bank of Chile ( email )

Agustinas 1180
Santiago
Chile

Universidad de Chile ( email )

Ministry of Finance Teatinos l20 - Piso l2
Santiago
Chile

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Jong-Wha Lee

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

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