A cross-country study on income distribution and school enrolment

Abstract

This study examines whether income distribution affects school enrolment at primary, secondary and tertiary levels. Using cross-national evidence, it is found that a country's income inequality is positively and significantly associated with primary school enrolments. However, there is a negative association between income inequality and enrolment at both secondary and tertiary levels, even after controlling for some explanatory variables.

Notes

¹ For example, models with imperfect credit markets showed that poor people tend to forgo human capital investment (e.g., Tsiddon, 1992; Galor and Zeria, 1993). Johnson (2002) empirically showed the importance of market imperfection in human capital accumulation persistence. In addition, Tavares and Wacziarg (2001) suggested that democracies would choose policies that promote human capital accumulation.

² On the contrary with our analysis, Park (1998), Pérez et al . (2002) empirically presented that a higher level of educational attainment may be associated with a subsequent decrease in the level of income inequality.

³ Empirical evidence on the relationship between inequality and redistribution is also controversial. For a recent survey, see de Mello and Tiongson (2003).

⁴ These may be downloaded from http://www.unesco.org.

⁵ This result is available upon request from the author.

⁶ This is suggested in footnote 1.