Open AccessTHE DETERMINANTS OF INCOME INEQUALITY: THE ROLE OF EDUCATION
Author(s) -
Anna Hovhannisyan,
Ramón A. Castillo-Ponce,
Rolando I. Valdez
Publication year - 2019
Publication title -
scientific annals of economics and business
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.204
H-Index - 6
eISSN - 2501-3165
pISSN - 2501-1960
DOI - 10.47743/saeb-2019-0040
Subject(s) - openness to experience , economic inequality , economics , inequality , unemployment , income inequality metrics , demographic economics , sample (material) , panel data , foreign direct investment , income distribution , population , investment (military) , developing country , development economics , labour economics , econometrics , economic growth , macroeconomics , politics , political science , sociology , psychology , mathematical analysis , social psychology , chemistry , demography , mathematics , chromatography , law
The economics literature reports mixed evidence on the importance of education as a determinant of income inequality. In this document we shed light on the debate by testing this relationship for a sample of developing and developed countries from 1990 to 2014. We control for country specific characteristics including trade openness, unemployment, foreign direct investment, and the share of elderly population. The results of robust panel data estimations unequivocally find that education is negatively and significantly associated with income inequality.