Inequality in Education and Income Across Countries

This paper was created in 2011; Abstract: This paper examines the relationship between educational inequalities to income inequality across countries by using Gini Coefficient and Cobb-Douglas (CD) production function. Also, the paper reinforces the future vision of the literature on this subject by utilizing the most recent cross-section data, and we create a new combination of controls for both the labour market and socio-political. There are country-specific variables that can have an effect on each of them, and thus make it difficult to assess income inequality across countries. Considering these difficulties, the structural components of each country were controlled. Specifically, separate regressions are performed that takes into account the level of development of the country. Then we discuss how to address this matter in the literature, and also demonstrated the theoretical bases of the paper in addition to an empirical explanation model, and suggest policy recommendations in accordance with the results. This would provide governments with more direction to improve this income inequality