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Factors Of Inequality In Education

765 Words4 Pages

It is widely believed, that mechanisms, implemented in markets, societies and policies are able to prevent undermining the potential for economic growth and are able to align the level of inequality in Asian countries. To begin with, income inequality is usually measured at national level and it is apparently defined as an uneven distribution of money among the population. In this essay such three mechanisms as improved education, tax policy and redistribution are going to be addressed and examined in more detail. Due to this fact, the main aim is to provide mechanisms significance and to prove their effectiveness and inevitable role in economic and social development.

In the world where most educated receive the largest share of benefits from technological progress and rapidly changing social environment , it is not surprising that government expenditure on education has proved to be a highly effective tool in reducing inequality. According to Kanbur, Rhee and Zhuang (2014) the impact of education expenditure on Gini coefficient in Asia is even more significant than in the rest of the world. More specifically, the estimated marginal effect of government education expenditure on income inequality is minus 0.483 (compared to minus 0.034 in other parts of the globe combined), which means that the larger the expenditure, the smaller the Gini coefficient is expected to be. At the same time, the data provided by the World Bank (2012) indicates that Asia on average is lagging

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