Research Article
BibTex RIS Cite
Year 2016, , 49 - 57, 30.03.2016
https://doi.org/10.17261/Pressacademia.2016116553

Abstract

References

  • Barro, R. J. 2000, “Inequality and Growth in a Panel of Countries”, Journal of Economic Growth, 5(1), pp. 5-32.
  • Bose, A., &Chatterjee, S. 2003, “Generalized bootstrap for estimators of minimizers of convex functions”,J. Stat. Planning and Inf., 117, pp. 225-239.
  • Bramati, M.C., & Croux, C. 2007, “Robust Estimators for the Fixed Effects Panel Data Model”, Econometrics Journal, 10(3), pp. 521-540
  • Bulir, A., & Gulde, A.M. 1995, “Inflation and income distribution: Further evidence on empirical links”, IMF Working Paper 95/86. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=883233. Accessed 10 July 2015.
  • Campbell, M.,Haveman, R., Sandefur, & G.-Wolfe, B. 2005, “Economic inequality and educational attainment across ageneration”. http://www.irp.wisc.edu/publications/focus/pdfs/foc233b.pdf. Accessed 10 July 2015.
  • Carnoy, M., Loyalka, P., Androuschak, G., & Froumin, I. 2014, “The Concept of Public Goods, the State, and Higher Education Finance: A View from the BRICS”, Higher Education, 68(3), pp. 1-20.
  • Checci,D. 2001, “Education, inequality and income inequality. LSE Research paper”, http://eprints.lse.ac.uk/6566/. Accessed 15 May 2015.
  • Checchi, D., &Van De Werfhorst, H. 2014, “Educational Policies and Income Inequality”, IZA Discussion Paper DP No.8222. http://ftp.iza.org/dp8222.pdf. Accessed 17 May 2015.
  • Dabla-Norris, E.,Kochhar, K., Suphaphiphat, N., Ricka, & Tsounta, E. 2015, “Causes and consequences of income inequality: A global perspective”, IMF staff discussion note. https://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf. Accessed 3 July 2015.
  • De Gregorio, J., & Lee. J.W. 2002, “Education and Income Inequality: New Evidence from Cross-Country Data”, Review of Income and Wealth, 48(3), pp. 395-416.
  • Dimelis, S., & Livada, A. 1999, “Inequality and Business Cycles in the US and European Countries”, International Advances in Economic Research, 5(3), pp.321-338.
  • Dollar, D., & Kraay, A. 2002, “Growth is Good for the Poor”, Journal of Economic Growth, 7(3), pp. 195-225.
  • Easterly, W. 1999, “Life during Growth: International Evidence on Quality of Life and per capita Income”, Journal of Economic Growth 4, pp. 239-276.
  • Gallup, J.L. 2012, “Is there a Kuznets curve?”, Working paper. https://www.pdx.edu/econ/sites/www.pdx.edu.econ/files/kuznets_complete.pdf. Accessed 10 May 2015.
  • Hershbein, B., Kearney, M., & Summers, H. 2015, “Increasing education: What it will and will not do for earnings and earnings inequality”, http://www.brookings.edu/blogs/up-front/posts/2015/03/31-what-increasing-education-will-and-wont-do-for-earnings-inequalityhershbein-kearney-summers. Accessed 20 October 2015.
  • Jacobsen, P. E., & Giles, D. E. A. 2006, “Income Distribution in the United States: Kuznets’ Inverted U-Hypothesis and Data NonStationarity”, The Journal of International Trade and Economic Development, 7, pp. 405-423
  • Knight, J., & Sabot, R. 1983, “Educational expansion and the Kuznets effect”, The American Economic Review, 73(5), pp. 1132-36.
  • Koenker, R., & Bassett, S. 1978, “Regression Quantiles”, Econometrica, 46, pp. 33-50.
  • Koenker, R. 2004, “Quantile Regression for Longitudinal Data”, Journal of Multivariate Analysis, 91 (1), pp.74–89.
  • Kraugman, P. 2015, “Knowledge Isn’t Power”, http://www.nytimes.com/2015/02/23/opinion/paul-krugman-knowledge-isntpower.html?_r=0. Accessed 15 October 2015.
  • Kuznets, S. 1955, “Economic Growth and Income Inequality”, American Economic Review, 45(1), pp. 1-28. Lamarche, C. 2010, “Robust penalized quantile regression estimation for panel data”, Journal of Econometrics 157(2), pp. 396-408.
  • McGregor, N., Isaksson, A., & Kaulich, F. 2015, “Importing, exporting and the productivity of services firms in Sub Saharan Africa”. The journal of International Trade & Economic Development, 24, pp. 499-522.
  • Palm, F.C., Smeekes, S., & Urbain, J.P. 2011, “Cross-sectional dependence robust block bootstrap panel unit root tests”, Journal of Econometrics, 163(1), pp. 85-104.
  • Paparoditis, E., & Politis, D.N. 2003, “Residual-based block bootstrap for unit root testing”. Econometrica, 71, pp. 813–856
  • Ravallion, M., & Chen, S. 1997, “What can new survey data tell us about recent changes in distribution and poverty?”, World Bank Economic Review, 11(2), pp. 357-382.
  • Schultz, T. W. 1963, The Economic Value of Education. New York: Columbia University Press.
  • Smeekes, S., & Urbain, J.P. 2014, “On the Applicability of the Sieve Bootstrap in Time Series Panels”, Oxford Bulletin of Economics and Statistics, 76(1), pp. 139-151.
  • Oyvat, C. 2010, “How Urbanization Affects the Inequality in Developing Countries: A Critique of Kuznets Curve”, University of Massachusetts New School University Economics Graduate Student Workshop 23-24 October, 2010.http://scholar.google.com/citations?view_op=view_citation&hl=en&user=ku4HdIwAAAAJ&citation_for_view=ku4HdIwAAAAJ:ux6o8ySG0sC. Accessed 15 April 2015.
  • University of Texas, Inequality Project, http://utip.gov.utexas.edu/data.html, Accessed 15 Nov 2015.
  • Verardi, V., & Wagner, J. 2012, “Productivity Premia for German Manufacturing Firms Exporting to the Euro-Area and Beyond: First Evidence from Robust Fixed Effects Estimations”, The World Economy, Wiley Blackwell, 35(6), pp. 694-712.
  • Verardi, V., & Croux, C. 2009, “Robust Regression in Stata”, Stata Journal, 9 (3), pp. 439–453.
  • Wagner, M. 2008, “The carbon Kuznets curve: A cloudy Picture emitted by bad econometrics?”, Resource and Energy Economics, 30(3), pp. 388-408.
  • World Bank: World Development Indicators. http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=World-Development-Indicators (2015). Accessed 15 Nov 2015.

THE RELATIONSHIP BETWEEN INCOME INEQUALITY AND TERTIARY ATTAINMENT FOR DEVELOPING COUNTRIES: IS IT A U-SHAPED RELATIONSHIP?

Year 2016, , 49 - 57, 30.03.2016
https://doi.org/10.17261/Pressacademia.2016116553

Abstract

This study explores the effects of tertiary attainment
and per capita income on income inequality for 30 developing countries over the
period 1990-2008 by three different estimation approaches namely classical
estimation of a fixed effects panel data model, quantile panel type regression,
and robust panel type regression models. The findings reveal that there is no
evidence of the Kuznets hypothesis of inverted U curve dependence of income
inequality on income. However, the results of robust panel type regression and
quantile regression for the 20th percentile indicate this
relationship as U-shaped. According to robust panel type regression, the effect
of tertiary attainment on income inequality is significant and U-shaped, as
well. 

References

  • Barro, R. J. 2000, “Inequality and Growth in a Panel of Countries”, Journal of Economic Growth, 5(1), pp. 5-32.
  • Bose, A., &Chatterjee, S. 2003, “Generalized bootstrap for estimators of minimizers of convex functions”,J. Stat. Planning and Inf., 117, pp. 225-239.
  • Bramati, M.C., & Croux, C. 2007, “Robust Estimators for the Fixed Effects Panel Data Model”, Econometrics Journal, 10(3), pp. 521-540
  • Bulir, A., & Gulde, A.M. 1995, “Inflation and income distribution: Further evidence on empirical links”, IMF Working Paper 95/86. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=883233. Accessed 10 July 2015.
  • Campbell, M.,Haveman, R., Sandefur, & G.-Wolfe, B. 2005, “Economic inequality and educational attainment across ageneration”. http://www.irp.wisc.edu/publications/focus/pdfs/foc233b.pdf. Accessed 10 July 2015.
  • Carnoy, M., Loyalka, P., Androuschak, G., & Froumin, I. 2014, “The Concept of Public Goods, the State, and Higher Education Finance: A View from the BRICS”, Higher Education, 68(3), pp. 1-20.
  • Checci,D. 2001, “Education, inequality and income inequality. LSE Research paper”, http://eprints.lse.ac.uk/6566/. Accessed 15 May 2015.
  • Checchi, D., &Van De Werfhorst, H. 2014, “Educational Policies and Income Inequality”, IZA Discussion Paper DP No.8222. http://ftp.iza.org/dp8222.pdf. Accessed 17 May 2015.
  • Dabla-Norris, E.,Kochhar, K., Suphaphiphat, N., Ricka, & Tsounta, E. 2015, “Causes and consequences of income inequality: A global perspective”, IMF staff discussion note. https://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf. Accessed 3 July 2015.
  • De Gregorio, J., & Lee. J.W. 2002, “Education and Income Inequality: New Evidence from Cross-Country Data”, Review of Income and Wealth, 48(3), pp. 395-416.
  • Dimelis, S., & Livada, A. 1999, “Inequality and Business Cycles in the US and European Countries”, International Advances in Economic Research, 5(3), pp.321-338.
  • Dollar, D., & Kraay, A. 2002, “Growth is Good for the Poor”, Journal of Economic Growth, 7(3), pp. 195-225.
  • Easterly, W. 1999, “Life during Growth: International Evidence on Quality of Life and per capita Income”, Journal of Economic Growth 4, pp. 239-276.
  • Gallup, J.L. 2012, “Is there a Kuznets curve?”, Working paper. https://www.pdx.edu/econ/sites/www.pdx.edu.econ/files/kuznets_complete.pdf. Accessed 10 May 2015.
  • Hershbein, B., Kearney, M., & Summers, H. 2015, “Increasing education: What it will and will not do for earnings and earnings inequality”, http://www.brookings.edu/blogs/up-front/posts/2015/03/31-what-increasing-education-will-and-wont-do-for-earnings-inequalityhershbein-kearney-summers. Accessed 20 October 2015.
  • Jacobsen, P. E., & Giles, D. E. A. 2006, “Income Distribution in the United States: Kuznets’ Inverted U-Hypothesis and Data NonStationarity”, The Journal of International Trade and Economic Development, 7, pp. 405-423
  • Knight, J., & Sabot, R. 1983, “Educational expansion and the Kuznets effect”, The American Economic Review, 73(5), pp. 1132-36.
  • Koenker, R., & Bassett, S. 1978, “Regression Quantiles”, Econometrica, 46, pp. 33-50.
  • Koenker, R. 2004, “Quantile Regression for Longitudinal Data”, Journal of Multivariate Analysis, 91 (1), pp.74–89.
  • Kraugman, P. 2015, “Knowledge Isn’t Power”, http://www.nytimes.com/2015/02/23/opinion/paul-krugman-knowledge-isntpower.html?_r=0. Accessed 15 October 2015.
  • Kuznets, S. 1955, “Economic Growth and Income Inequality”, American Economic Review, 45(1), pp. 1-28. Lamarche, C. 2010, “Robust penalized quantile regression estimation for panel data”, Journal of Econometrics 157(2), pp. 396-408.
  • McGregor, N., Isaksson, A., & Kaulich, F. 2015, “Importing, exporting and the productivity of services firms in Sub Saharan Africa”. The journal of International Trade & Economic Development, 24, pp. 499-522.
  • Palm, F.C., Smeekes, S., & Urbain, J.P. 2011, “Cross-sectional dependence robust block bootstrap panel unit root tests”, Journal of Econometrics, 163(1), pp. 85-104.
  • Paparoditis, E., & Politis, D.N. 2003, “Residual-based block bootstrap for unit root testing”. Econometrica, 71, pp. 813–856
  • Ravallion, M., & Chen, S. 1997, “What can new survey data tell us about recent changes in distribution and poverty?”, World Bank Economic Review, 11(2), pp. 357-382.
  • Schultz, T. W. 1963, The Economic Value of Education. New York: Columbia University Press.
  • Smeekes, S., & Urbain, J.P. 2014, “On the Applicability of the Sieve Bootstrap in Time Series Panels”, Oxford Bulletin of Economics and Statistics, 76(1), pp. 139-151.
  • Oyvat, C. 2010, “How Urbanization Affects the Inequality in Developing Countries: A Critique of Kuznets Curve”, University of Massachusetts New School University Economics Graduate Student Workshop 23-24 October, 2010.http://scholar.google.com/citations?view_op=view_citation&hl=en&user=ku4HdIwAAAAJ&citation_for_view=ku4HdIwAAAAJ:ux6o8ySG0sC. Accessed 15 April 2015.
  • University of Texas, Inequality Project, http://utip.gov.utexas.edu/data.html, Accessed 15 Nov 2015.
  • Verardi, V., & Wagner, J. 2012, “Productivity Premia for German Manufacturing Firms Exporting to the Euro-Area and Beyond: First Evidence from Robust Fixed Effects Estimations”, The World Economy, Wiley Blackwell, 35(6), pp. 694-712.
  • Verardi, V., & Croux, C. 2009, “Robust Regression in Stata”, Stata Journal, 9 (3), pp. 439–453.
  • Wagner, M. 2008, “The carbon Kuznets curve: A cloudy Picture emitted by bad econometrics?”, Resource and Energy Economics, 30(3), pp. 388-408.
  • World Bank: World Development Indicators. http://databank.worldbank.org/data/views/variableselection/selectvariables.aspx?source=World-Development-Indicators (2015). Accessed 15 Nov 2015.
There are 33 citations in total.

Details

Journal Section Articles
Authors

Ozlem Yorulmaz

Publication Date March 30, 2016
Published in Issue Year 2016

Cite

APA Yorulmaz, O. (2016). THE RELATIONSHIP BETWEEN INCOME INEQUALITY AND TERTIARY ATTAINMENT FOR DEVELOPING COUNTRIES: IS IT A U-SHAPED RELATIONSHIP?. Journal of Business Economics and Finance, 5(1), 49-57. https://doi.org/10.17261/Pressacademia.2016116553

Journal of Business, Economics and Finance (JBEF) is a scientific, academic, double blind peer-reviewed, quarterly and open-access journal. The publication language is English. The journal publishes four issues a year. The issuing months are March, June, September and December. The journal aims to provide a research source for all practitioners, policy makers and researchers working in the areas of business, economics and finance. The Editor of JBEF invites all manuscripts that that cover theoretical and/or applied researches on topics related to the interest areas of the Journal. JBEF charges no submission or publication fee.



Ethics Policy - JBEF applies the standards of Committee on Publication Ethics (COPE). JBEF is committed to the academic community ensuring ethics and quality of manuscripts in publications. Plagiarism is strictly forbidden and the manuscripts found to be plagiarized will not be accepted or if published will be removed from the publication. Authors must certify that their manuscripts are their original work. Plagiarism, duplicate, data fabrication and redundant publications are forbidden. The manuscripts are subject to plagiarism check by iThenticate or similar. All manuscript submissions must provide a similarity report (up to 15% excluding quotes, bibliography, abstract, method).


Open Access - All research articles published in PressAcademia Journals are fully open access; immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited. Open access is a property of individual works, not necessarily journals or publishers. Community standards, rather than copyright law, will continue to provide the mechanism for enforcement of proper attribution and responsible use of the published work, as they do now.