Education stock and its implication for income inequality: The case of Asian economies
Author(s) -
Arshed Noman,
Anwar Awais,
Hassan Muhammad Shahid,
Bukhari Samra
Publication year - 2019
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12585
Subject(s) - economics , inequality , cointegration , economic inequality , demographic economics , stock (firearms) , estimation , income distribution , income inequality metrics , econometrics , labour economics , development economics , mathematics , geography , mathematical analysis , management , archaeology
Abstract This study develops a quadratic relationship between education and income inequality among Asian developing economies for the period from 1960 to 2015. Panel cointegration and fully modified OLS is applied for the estimation of long‐run coefficients. The results show that initial, primary, secondary, and tertiary enrollment increases inequality. However, the effect of education on income inequality becomes negative after a certain threshold level (i.e., 97.5% for primary, 43.5% for secondary, and 11% for tertiary). Thus, this result proves the Kuznets phenomenon of an inverted U‐shape relationship for primary, secondary, and tertiary enrollments.
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