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Inequality
Growth
and Poverty in an Era of Liberalization and Globalization$
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Giovanni Andrea Cornia

Print publication date: 2004

Print ISBN-13: 9780199271412

Published to Oxford Scholarship Online: August 2004

DOI: 10.1093/0199271410.001.0001

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Does Educational Achievement Help Explain Income Inequality?

Does Educational Achievement Help Explain Income Inequality?

Chapter:
(p.81) 4 Does Educational Achievement Help Explain Income Inequality?
Source:
Inequality Growth and Poverty in an Era of Liberalization and Globalization
Author(s):

Daniele Checchi

Publisher:
Oxford University Press
DOI:10.1093/0199271410.003.0004

Discusses the fact that although income distribution and the distribution of educational attainments are obviously related, the sign of the relationship between educational achievements and income inequality cannot be predicted a priori . For this reason, the chapter investigates the empirical determinants of aggregate income inequality and, more specifically, the relative contribution of education to measured income inequality. Checchi considers this to be crucial for two reasons: first, from a theoretical point of view, it is important to understand the plausibility of studying intergenerational equilibria under stationary distributions of income and human capital in the population; second, from a policy point of view, it is important to understand whether urging countries (or people) to increase their educational achievements is going to exacerbate, moderate, or have little influence on the subsequent earnings distribution. The chapter is organized as follows: the second section reviews the literature on income inequality determinants, the third provides an empirical econometric analysis, and the last offers conclusions; an appendix indicates data sources and discusses data reliability.

Keywords:   econometric analysis, education, income distribution, income inequality, inequality

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