Quotation Sauer, Petra and Zagler, Martin. 2014. (In)equality of Education and Economic Growth. Review of Income and Wealth 60 (S2): S. 353-379.


RIS


BibTeX

Abstract

This paper investigates the relationship between the level and the distribution of education and economic development. We contribute to the literature by introducing an interaction term between the education Gini coefficient and average years of schooling. In a dynamic panel over 55 years and 134 countries we provide, on the one hand, strong evidence that more schooling is good for growth, but the coefficient is variable and substantially declining in the degree of inequality. The aggregate benefit to education thus depends on a country's position in the education distribution. On the other hand, we find a slight transitional increase in education inequality to be beneficial at a very low average level of schooling, but detrimental for growth at a relatively high average level. Allowing for the macroeconomic return to education to be heterogeneous with respect to the degree of inequality is therefore paramount in understanding the relationship between education and development.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Review of Income and Wealth
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title (In)equality of Education and Economic Growth
Volume 60
Number S2
Year 2014
Page from 353
Page to 379
Reviewed? Y
URL http://onlinelibrary.wiley.com/doi/10.1111/roiw.12142/abstract
DOI na

Associations

People
Sauer, Petra (Former researcher)
Zagler, Martin (Details)
Organization
Research Institute for International Taxation FI (Details)
Institute for Macroeconomics IN (Details)
Research Institute for Human Capital and Development FI (Former organization)
Google Scholar: Search