Analysis of Human Capital Level and Inequality Interrelation

Larionova, Nataliya; Varlamova, Julia

doi:10.5901/mjss.2015.v6n1s3p252

Cited by 5 publications

(4 citation statements)

References 3 publications

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“…Regarding the level of human development, our results suggest that the higher the level of human development, the lower the income inequality. These results are consistent with others found in related literature (Ortega et al, 2016;Larionova & Variamova, 2015) and contribute to complement other works (Amate-Fortes et al, 2017). Also, by controlling for it in our estimations, it allows us to know that the relationship between financial knowledge and income inequality is not conditioned by differences in human development between the different countries in the sample.…”

Section: Resultssupporting

confidence: 93%

Is Income Inequality Influenced by Financial Knowledge? A Macroeconomic and Longitudinal Analysis

et al. 2021

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Our objective is to analyze whether financial knowledge influences income inequality. For this purpose, we resort to a new index of financial knowledge that differs from the existing ones in that it is both longitudinal and macroeconomic. We use this index as one of the explanatory variables of the Net Gini Index in our panel data estimations. Based on a sample of 63 countries over the period 2008–2014, our results allow us to conclude that financial knowledge is related to income inequality and that, moreover, this relationship is non-linear. Thus, increases in financial knowledge could reduce income inequality when starting from relatively low levels of such knowledge. However, at a certain threshold, the income redistributive effect of financial knowledge could disappear or even reverse. Even so, national strategies for financial education could be useful to achieve economic equity in those countries where financial knowledge levels are low. In addition, we shed light on the effect that other variables (such as institutional quality or under-education) have on income inequality.

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Section: Resultssupporting

confidence: 93%

Is Income Inequality Influenced by Financial Knowledge? A Macroeconomic and Longitudinal Analysis

et al. 2021

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“…In connection with Becker's theory of human capital (1965), several studies conclude that increases in educational level are associated with reductions in income inequality (De Gregorio and Lee, 2002;Larionova and Varlmova, 2015). The justification would be that the more a worker is trained, the more opportunities he/she has for employment and it is more likely for him/her to opt to a higher remuneration, which tends, in turn, to reduce wage dif ferences.…”

Section: Income Inequality and Explanatory Variablesmentioning

confidence: 99%

Government Social Expenditure and Income Inequalities in the European Union

Sánchez¹,

Pérez-Corral²

2018

HPE-RPE

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This paper analyzes the relationship between public social expenditure and income inequality distribu tion in the 28 Member States of the European Union, throughout the period 2005-2014. We estimate dynamic panel models. The results show the existence of a negative correlation between public social expenditure as a whole and income inequality. Distinguishing among different expenditure concepts, the association between social expenditure and income inequality may be different in the emerging Member States as compared to the rest of the States. In the emerging States, spending on health and spending on social protection are negatively associated with income inequality, and in the rest of States, this redistributive function is carried out only by spending on social protection. Spending on education is not significantly related to income inequality in any group of studied countries.

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“…Human capital improves economic growth through its effect on total factor productivity. Apart from its role in enhancing overall factor productivity, the components of human capital (education and health) were found to have a positive effect on creation of equal opportunity for all citizens in the country (Mincer, 1991; Ridell and Song, 2011; Larionova and Varlamova, 2015).…”

Section: Introductionmentioning

confidence: 99%

Human capital and poverty reduction in OPEC member-countries

Olopade

Okodua

Oladosun

et al. 2019

Heliyon

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A vast study has shown a mixed result on the implications of a natural resource on growth and poverty. Theoretically, the Resource Curse Hypothesis stresses that natural resource serves as an obstacle for growth. However, the connection between human capital and poverty in OPEC member countries remain under-researched. To ensure inclusiveness in growth, it is essential to focus on human capital models that incorporate the components of poverty reduction. As a result, this study investigates the interactive relationship between human capital components and poverty reduction in OPEC member countries. It is a cross-country study of a panel fully modified least-squares of 12 countries within the OPEC region. The interactive effects of the components of human capital development have a long-run impact on poverty reduction in OPEC member countries. Besides, human capital components confirm a positive effect on poverty reduction. Thus, since human capital is a crucial determinant of improving economic growth, OPEC member countries should invest more on the quality of human capital through education and health to improve the living standard of people and societal welfare.

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Analysis of Human Capital Level and Inequality Interrelation

Cited by 5 publications

References 3 publications

Is Income Inequality Influenced by Financial Knowledge? A Macroeconomic and Longitudinal Analysis

Is Income Inequality Influenced by Financial Knowledge? A Macroeconomic and Longitudinal Analysis

Government Social Expenditure and Income Inequalities in the European Union

Human capital and poverty reduction in OPEC member-countries

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