1 / 11

Educational Attainment and Income Inequality in Southeast Missouri

Educational Attainment and Income Inequality in Southeast Missouri. Kang H. Park Professor of Economics Southeast Missouri State University. Introduction. Human capital theory: Educational spending is an investment because it increases worker productivity.

Patman
Download Presentation

Educational Attainment and Income Inequality in Southeast Missouri

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Educational Attainment and Income Inequality in Southeast Missouri Kang H. Park Professor of EconomicsSoutheast Missouri State University

  2. Introduction • Human capital theory: • Educational spending is an investment because it increases worker productivity. • Human capital theory is used to explain income differentials. • This study examines the effects of educational variables on income and income inequality in Southeast Missouri, using the 2000 US census data covering 34 Southeast Missouri counties. • Gini index from B. Domazlicky’s 2005 article.

  3. Descriptive Statistics EDMEAN: Average years of schooling EDSD: Standard deviation of years of schoolingEDCV: Coefficient of variation of years of schooling, EDSD/EDMEANGini Index (GINI): measure of income inequality

  4. Regression of income on education variables N=34 Numbers in parentheses are t-values. ** The variable is significant at the 0.01 level and * The variable is significant at the 0.05 level.

  5. Regression of income inequality on income and education variables N=34 LnCapita: natural logarithm of per capita incomeNumbers in parentheses are t-values. ** The variable is significant at the 0.01 level and * The variable is significant at the 0.05 level.

  6. Summary • A higher levels of income and education have an equalizing effect on income distribution • The dispersion of schooling has a disequalizing effect on income distribution. • Both LnCapita and EDSD (or EDCV) are statistically significant in explaining the poverty rate. • only EDSD(or EDCV) can explain the Gini index well.

More Related