Educational mismatch and income inequality

Tang, Rongsheng; Wang, Gaowang

doi:10.1016/j.econmod.2021.105525

Cited by 10 publications

(5 citation statements)

References 26 publications

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“…The objective is to combine national accounts, surveys, and tax data in a systematic manner to produce inequality series that can be used to compare inequality across countries in a consistent way, in the same manner as GDP can be used to compare the macro performances of countries today. 3 The rest of this paper is organized as follows. In Section I we describe our main data sources, concepts, and methodology.…”

mentioning

confidence: 99%

Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015

Piketty

Zucman

2019

American Economic Review

282

149

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We combine national accounts, surveys, and new tax data to study the accumulation and distribution of income and wealth in China from 1978 to 2015. The national wealth-income ratio increased from 350 percent in 1978 to 700 percent in 2015, while the share of public property in national wealth declined from 70 percent to 30 percent. We provide sharp upward revision of official inequality estimates. The top 10 percent income share rose from 27 percent to 41 percent between 1978 and 2015; the bottom 50 percent share dropped from 27 percent to 15 percent. China’s inequality levels used to be close to Nordic countries and are now approaching US levels. (JEL D31, E01, E23, O11, P24, P26, P36)

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mentioning

confidence: 99%

Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015

Piketty

Zucman

2019

American Economic Review

282

149

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“…Some insight for the results may be that since education plays an important role in the decision towards occupational choices, access to specialized jobs and economic opportunities it will exert a reducing effect on income inequality in the long run. However, it contradicts studies that find that human capital may exhibit inequality-aggravating possibilities if education is mismatched (Tang & Wang, 2021).…”

Section: Variablesmentioning

confidence: 74%

Does institutional quality moderate the human capital–inequality dynamics? Comparative evidence from LAC and SSA countries

Adeleye

2024

African Development Review

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Aligning with Sustainable Development Goal 10, this study probes whether quality institutions matter in the drive towards reducing income inequality through human capital. An unbalanced panel data on the Gini index (measure of income inequality), human capital index and institutional quality index drawn across 83 Latin America and sub‐Saharan African (SSA) countries from 2010 to 2019 is used. For the most part, the consensus is that the interaction of human capital and quality institutions significantly reduces income inequality. For context, inequality reduces by −7.810 and −21.30 points for the full and SSA samples. Other findings reveal that the interaction effect is consistently negative at upper quantiles. Evidence from the margin plots reveals that the effect of human capital on inequality improves as institutional quality is strengthened. The downward trend of the plot within the 95% confidence interval shows that institutional quality enhances the impact of human capital on income inequality for the full sample and in SSA. This is a novel contribution to the literature as it suggests that quality institutions matter in the drive towards reducing the menace of income inequality. Policy recommendations are discussed.

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“…Also, Saha et al (2021) deploy the difference generalised method of moments (DGMM) on a study of 21 Asian countries to reveal a significant negative relationship between education and income inequality. With calibrations, Tang and Wang (2021) use the 1993, 2003 and 2013 data on the National Survey of College Graduates to assert that education mismatch widens income inequality. Equally, Alvarado et al (2021) use the fully modified OLS on a panel study of 75 countries from 1990 to 2016 to show that education widens the inequality gap.…”

Section: Income Inequality and Human Capitalmentioning

confidence: 99%

Income Inequality, Human Capital and Institutional Quality in Sub-Saharan Africa

Adeleye

2023

Soc Indic Res

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This paper aligns with Sustainable Development Goal 10 to investigate the role of quality institutions in the human capital-income inequality nexus. It uses an unbalanced panel data on the Gini index (measure of income inequality), human capital index and institutional quality index on 46 sub-Saharan African countries from 2010 to 2019. The Driscoll and Kraay (Rev Econ Stat 80:549–560, 1998) panel spatial correlation consistent (PSCC) and Firpo et al. (Unconditional quantile regressions. National Bureau of Economic Research Working Paper, No. 339, pp 1–54, 2007. https://doi.org/10.3982/ECTA6822) bootstrap unconditional quantile regression (UQR) techniques are deployed. Among others, findings reveal that: (1) human capital and institutions aggravate inequality; (2) the interaction of human capital and institution reduce inequality; (3) UQR reveals that the interaction effect is negative at lower quantiles of 0.10, 0.25 and 0.50; and (4) results across the sub-regions are mixed. In addition, evidence from the margin plots reveals that the conditional effect of human capital on income inequality is negative as institutions are strengthened. The downward trend of the plot within the 95% confidence interval shows that institutional quality enhances the impact of human capital on income inequality. These are novel contributions to the literature as it suggests that quality institutions matter in the drive towards reducing the menace of income inequality. Policy recommendations include strengthening institutions and making basic education affordable.

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Educational mismatch and income inequality

Cited by 10 publications

References 26 publications

Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015

Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015

Does institutional quality moderate the human capital–inequality dynamics? Comparative evidence from LAC and SSA countries

Income Inequality, Human Capital and Institutional Quality in Sub-Saharan Africa

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