Shahabadi, Abolfazl and Nemati, Morteza and Hosseinidoust, Seyed Ehsan
(2018)
The Effect Of Education On Income Inequality
In Selected Islamic Countries.
International Journal of Asia Pacific Studies (IJAPS), 14 (2).
pp. 61-78.
ISSN ISSN: 1823-6243
Abstract
The impact of education on income inequality remains a challenging issue at the
core of economic debates. The present study attempts to investigate the effect of
income inequality in a selection of Islamic countries during 1990–2013. Method
of panel data has been implemented, and the fxed effects are examined against the
random ones by the Hausman test. The impacts of gross domestic product (GDP)
and training at primary, secondary and university levels on income inequality is
investigated in the selected Islamic countries. Findings indicate that the enrolment
rate in primary and secondary schools has a signifcant negative effect on income
inequality, and the enrolment rate in university has a signifcant positive effect on
income inequality. Thus, training in primary and secondary schools might reduce
income inequality, and education in universities can increase income inequality
because of the higher fnancial capability of certain classes of people and the
expertise they have acquired.
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