Do schooling years improve the earning capacity of lower income groups?
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Date
2012
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Inderscience Publishers
Abstract
The paper analyses the relationship between the popular Barro and Lee (2001) 'average years of schooling' with income inequality, wage inequality, and income deciles and income percentiles for the sample of developed and developing countries. The results suggest that countries where students complete higher numbers of years of schooling on average also perform better on relative incomes meaning that increase in average income comes from improvements in the earning capacity of the lower income groups or unskilled labour. The paper also finds that an educated population means that there is redistribution of income from the rich to the poor creating thriving middle class.
Description
Keywords
Education, Wage Inequality, Income Inequality, Educated Population, Income Redistribution, Earning Capacity, Lower Income Groups, Schooling Years
Citation
International Journal of Education Economics and Development 2012 - Vol. 3, No.1 pp. 1 - 9