Anglia Ruskin Research Online (ARRO)
Browse
Sauer_2014.pdf (1000.99 kB)

(In)equality in Education and Economic Development

Download (1000.99 kB)
journal contribution
posted on 2023-08-30, 16:32 authored by Petra Sauer, Martin Zagler
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.

History

Refereed

  • Yes

Volume

60

Issue number

S2

Page range

S353-S379

Publication title

Review of Income and Wealth

ISSN

1475-4991

Publisher

Wiley

File version

  • Accepted version

Language

  • eng

Legacy posted date

2019-09-04

Legacy creation date

2019-09-04

Legacy Faculty/School/Department

ARCHIVED Lord Ashcroft International Business School (until September 2018)

Usage metrics

    ARU Outputs

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC