Human capital and income inequality*

Jong-Wha Lee, Hanol Lee

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This study investigates empirically how human capital, measured by educational attainment, is related to income distribution. The regressions, using a cross-country data between 1980 and 2015, show that a more equal distribution of education contributes significantly to reducing income inequality. Educational expansion is a major factor in reducing educational inequality and thus income inequality. Social benefits spending and price stability contribute to reducing income inequality, while public education spending helps to reduce educational inequality. In contrast, higher per capita income, greater trade openness and faster technological progress tend to make both income and education distribution more unequal. The calibration of empirical results shows that we can attribute the rising income inequality within East Asian economies in recent decades to the unequalizing effects of fast income growth and rapid progress in globalization and technological change, which have surpassed the income-equalizing effects from improved equality in the distribution of educational attainment.

Original languageEnglish
JournalJournal of the Asia Pacific Economy
DOIs
Publication statusAccepted/In press - 2018 Jan 1

Fingerprint

human capital
income
educational inequality
educational attainment
education
income effect
technological progress
social benefits
income distribution
public education
technological change
equality
globalization
regression
economy
calibration
distribution

Keywords

  • education
  • globalization
  • human capital
  • Income distribution
  • inequality
  • technological change

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Political Science and International Relations

Cite this

Human capital and income inequality*. / Lee, Jong-Wha; Lee, Hanol.

In: Journal of the Asia Pacific Economy, 01.01.2018.

Research output: Contribution to journalArticle

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