Education and Income Inequality in the Regions of the European Union*

Abstract

This paper provides an empirical study of the determinants of income inequality across regions of the EU. Using the European Community Household Panel dataset for 102 regions over the period 1995-2000, it analyses how microeconomic changes in human capital distribution affect income inequality for the population as a whole and for normally working people. The different static and dynamic panel data analyses conducted reveal that the relationship between income per capita and income inequality, as well as between a good human capital endowment and income inequality is positive. High levels of inequality in educational attainment are also associated with higher income inequality. The above results are robust to changes in the definition of income distribution and may be interpreted as a sign of the responsiveness of the EU labor market to differences in qualifications and skills. Other results indicate that population ageing, female participation in the labor force, urbanization, agriculture, and industry are negatively associated to income inequality, while unemployment and the presence of a strong financial sector positively affect inequality. Finally, income inequality is lower in social-democratic welfare states, in Protestant areas, and in regions with Nordic family structures.

Notice of Retraction: Study on Labor Status of Workers in Urban China Based on Multinomial Logit Model

“…The explaining variables include personal characteristic variables, family characteristic variables, and regional characteristic variables. Gender, age and education are included in personal characteristic variables [3]. Family characteristic variables include wage income and non-wage income of other family members, reflecting the impact of family background on individuals [4]; number of kids is also considered as a family characteristic variable, and it can impact on housework and family expenditure, so have further impact on labor force participation.…”

Educational Gender Gap, Economic Growth and Income Distribution: An Empirical Study of the Interrelationship in Cameroon

“…Mahmood et al (2012) in their study obtained results suggesting that educational gap was statistically significant in affecting income inequality. Pose and Tselios (2009) result showed that high levels of inequality in educational attainment are associated with higher income inequality. Their results also showed that ageing population, female participation in the labour force, urbanization, agriculture and industry have a negative effect on inequality, while unemployment and the presence of a strong financial sector positively affect inequality.…”

The Impact of Globalization on Income Distribution and Income Inequality

“…These findings indicate that educational factors e.g. higher attainment can contribute to an improvement in income distribution (Rodríguez-Pose & Tselios, 2009). Moreover De Gregorio and from the Universidad de Chile and Korea University investigated that a country with higher educational attainment is more likely to have a more equal income distribution.…”