Education Inequality

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Education is an important factor to society especially in acquiring of jobs. The famous conception about education to employment is that, the higher the educational attainment then the higher the income it is. However, there are some factors that lacks people to access education. This literature gives different sides in adapting the theil index in the relationship between the income distribution and education inequality. There were only limited economic literatures that studied the effects of the distribution of educational attainment. Thus, the distribution of human capital to individuals have an important consequence that might affect the income distribution (Checchi, 2004); (De Gregorio and Lee, 2002); (Park, 1996) and economic…show more content…
This examines the behavior of microeconomic in terms of the human capital distribution that affect the income inequality in which comprise not only the whole populace but also the normally working people. The educational attainment and educational inequality can be measured as the human capital distribution. In order to compute for the inequalities of income and education, the generalized entropy index or the theil index was used. To avoid measurement error on inequalities and reduce the potential problems on the omission variable bias, the analysis was conducted through different static and dynamic panel data. The result of regression model in this study have showed that there is a positive relationship between income inequality and income per capita. However, the income inequality and educational attainment in the long run is not statistically significant. There is a notion on the relationship between educational inequality and income inequality that this paper believed that it is positively related. Present to the European areas, the high levels of inequality in educational attainment are connected to the higher income inequality in which is inferred to as the sensitivity of the labor market towards the qualifications and…show more content…
By using Gini or Theil measure of inequality, it shows that higher average levels of education are linked to increasing inequality. The study discussed the effects of policies on education to educational inequality, and discovered that the duration of compulsory education have an impact on inequality while the level of education has no control on how school tracking manipulates
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