THE DETERMINANTS OF INCOME INEQUALITY: THE ROLE OF EDUCATION

Author:

Hovhannisyan Anna1ORCID,Castillo-Ponce Ramon1ORCID,Valdez Rolando2ORCID

Affiliation:

1. California State University, Los Angeles United States

2. Cátedras CONACYT-Universidad Autónoma Chapingo Mexico

Abstract

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.

Publisher

Editura Universitatii Alexandru Ioan Cuza din Iasi

Subject

General Economics, Econometrics and Finance,General Business, Management and Accounting

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