Human capital inequality and income inequality: Developing countries

This paper examines the effect of human capital inequality on income inequality in Developing Countries.Gini coefficient is used as a consistent measurement for both inequalities. This paper also adds a few control variables: Globalization Index, GDP percapita and total population.It uses dynamic pa...

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Main Authors: Mahmood, Suraya, Md. Noor, Zaleha
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2013
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/19155/1/Pertanika%20JSSH%2021%20%28S%29%202012%20189%20-%20200.pdf
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author Mahmood, Suraya
Md. Noor, Zaleha
author_facet Mahmood, Suraya
Md. Noor, Zaleha
author_sort Mahmood, Suraya
collection UUM
description This paper examines the effect of human capital inequality on income inequality in Developing Countries.Gini coefficient is used as a consistent measurement for both inequalities. This paper also adds a few control variables: Globalization Index, GDP percapita and total population.It uses dynamic panel data two-Step System Generalized Method of Moment (GMM) for 52 countries over the period of 1970-2010. The empirical results show that human capital inequality has a significance positive effect on income inequality.This result is similar with the theoretical framework,where the human capital inequality and income inequality are positively correlated.However, other control variables such as Global and total population are insignificant with income inequality except for GDP percapita at 5 and 10 percent level.Thus, in order to reduce income inequality and to give citizens equal opportunities, governments of developing countries and policymakers need to minimise human capital inequality.
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spelling uum-191552016-11-10T04:54:13Z https://repo.uum.edu.my/id/eprint/19155/ Human capital inequality and income inequality: Developing countries Mahmood, Suraya Md. Noor, Zaleha HD28 Management. Industrial Management This paper examines the effect of human capital inequality on income inequality in Developing Countries.Gini coefficient is used as a consistent measurement for both inequalities. This paper also adds a few control variables: Globalization Index, GDP percapita and total population.It uses dynamic panel data two-Step System Generalized Method of Moment (GMM) for 52 countries over the period of 1970-2010. The empirical results show that human capital inequality has a significance positive effect on income inequality.This result is similar with the theoretical framework,where the human capital inequality and income inequality are positively correlated.However, other control variables such as Global and total population are insignificant with income inequality except for GDP percapita at 5 and 10 percent level.Thus, in order to reduce income inequality and to give citizens equal opportunities, governments of developing countries and policymakers need to minimise human capital inequality. Universiti Putra Malaysia Press 2013 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/19155/1/Pertanika%20JSSH%2021%20%28S%29%202012%20189%20-%20200.pdf Mahmood, Suraya and Md. Noor, Zaleha (2013) Human capital inequality and income inequality: Developing countries. Pertanika Journal of Social Sciences & Humanities, 21 ((S)). pp. 189-200. ISSN 0128-7702 http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-21-S-9
spellingShingle HD28 Management. Industrial Management
Mahmood, Suraya
Md. Noor, Zaleha
Human capital inequality and income inequality: Developing countries
title Human capital inequality and income inequality: Developing countries
title_full Human capital inequality and income inequality: Developing countries
title_fullStr Human capital inequality and income inequality: Developing countries
title_full_unstemmed Human capital inequality and income inequality: Developing countries
title_short Human capital inequality and income inequality: Developing countries
title_sort human capital inequality and income inequality developing countries
topic HD28 Management. Industrial Management
url https://repo.uum.edu.my/id/eprint/19155/1/Pertanika%20JSSH%2021%20%28S%29%202012%20189%20-%20200.pdf
work_keys_str_mv AT mahmoodsuraya humancapitalinequalityandincomeinequalitydevelopingcountries
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