The Impact of Educational and Gender Inequality on Income Inequality in South Asia

This paper examines the impact of educational and gender inequality in education on income inequality in South Asian countries for the time period of 1980 to 2010. Random effect model (REM) and fixed effect model (FEM) are used for estimation. Using the concept of education Gini the study find that there exist a positive relationship between educational and income inequality. The results also indicate that gender inequality in education at primary and tertiary level has positive and significant impact on income inequality but gender inequality at secondary level has negative and significant impact on income inequality. On the other hand, gender inequality at primary and tertiary level of education has negative impact on per capita income, while at secondary level has positive impact. The results also confirm that there exist U shaped Kuznets curve for the relationship between average year of schooling and inequality in education