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Year 2016, Volume: 5 Issue: 1, 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, Volume: 5 Issue: 1, 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 Volume: 5 Issue: 1

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

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