- Journal of Business Economics and Finance
- Vol: 5 Issue: 1
- THE RELATIONSHIP BETWEEN INCOME INEQUALITY AND TERTIARY ATTAINMENT FOR DEVELOPING COUNTRIES: IS IT A...
THE RELATIONSHIP BETWEEN INCOME INEQUALITY AND TERTIARY ATTAINMENT FOR DEVELOPING COUNTRIES: IS IT A U-SHAPED RELATIONSHIP?
Authors : Ozlem YORULMAZ
Pages : 49-57
Doi:10.17261/Pressacademia.2016116553
View : 7 | Download : 2
Publication Date : 2016-03-30
Article Type : Research
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 20 th 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.Keywords : Income inequality, Kuznets inverted U hypothesis, Quantile regression, Robust regression, tertiary education