{
  "title": "Income Inequality and Education Revisited: Persistence, Endogeneity, and Heterogeneity",
  "publication": "IMF Working Papers, May 26, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/05/26/income-inequality-and-education-revisited-persistence-endogeneity-and-heterogeneity-44854",
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  "summary": "This paper presents new results on the relationship between income inequality and education expansion—that is, increasing average years of schooling and reducing inequality of schooling.",
  "sections": [
    {
      "heading": "Summary of main findings",
      "content": "- The paper presents new results on the relationship between income inequality and education expansion (increasing average years of schooling and reducing inequality of schooling).\n- Dynamic panel estimation techniques that address persistence and endogeneity reveal:\n  - A large, positive, statistically significant and stable relationship between inequality of schooling and income inequality, especially in emerging and developing economies and among older age cohorts.\n  - A positive relationship between income inequality and average years of schooling, consistent with constant or increasing returns to additional years of schooling.\n  - The positive relationship with average years of schooling is small and not always statistically significant, but there is a statistically significant negative relationship with years of schooling of younger cohorts.\n- Statistical tests indicate that the dynamic estimators used are consistent and that the identifying instruments are valid."
    },
    {
      "heading": "Methods and econometric considerations",
      "content": "- Uses dynamic panel estimation techniques to address issues of persistence and endogeneity.\n- Conducts statistical tests to assess consistency of estimators and validity of identifying instruments."
    },
    {
      "heading": "Policy simulations and implications",
      "content": "- Policy simulations suggest that education expansion will continue to be inequality reducing.\n- The inequality-reducing role of education expansion will diminish as countries develop.\n- The role could be enhanced through a stronger focus on reducing inequality in the quality of education."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Education, Estimation techniques, Income distribution, Income inequality, Population and demographics\n- Keywords: income, inequality, WP\n\n---\n\n Content in this bundle\n\n- Income Inequality and Education Revisited: Persistence, Endogeneity, and Heterogeneity\n  - Income Inequality and Education Revisited: Persistence, Endogeneity, and Heterogeneity (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Income Inequality and Education Revisited: Persistence, Endogeneity, and Heterogeneity (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/05/26/income-inequality-and-education-revisited-persistence-endogeneity-and-heterogeneity-44854"
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    "Authors: David Coady, Allan Dizioli",
    "Published: May 26, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475595741.001",
    "The paper presents new results on the relationship between income inequality and education expansion (increasing average years of schooling and reducing inequality of schooling).",
    "Dynamic panel estimation techniques that address persistence and endogeneity reveal:",
    "Statistical tests indicate that the dynamic estimators used are consistent and that the identifying instruments are valid.",
    "Uses dynamic panel estimation techniques to address issues of persistence and endogeneity.",
    "Conducts statistical tests to assess consistency of estimators and validity of identifying instruments.",
    "Policy simulations suggest that education expansion will continue to be inequality reducing.",
    "The inequality-reducing role of education expansion will diminish as countries develop.",
    "The role could be enhanced through a stronger focus on reducing inequality in the quality of education.",
    "Subject: Education, Estimation techniques, Income distribution, Income inequality, Population and demographics",
    "Keywords: income, inequality, WP",
    "**Income Inequality and Education Revisited: Persistence, Endogeneity, and Heterogeneity**"
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