UPM Institutional Repository

Human capital inequality and income inequality: developing countries


Mahmood, Suraya and Mohd Noor, Zaleha (2013) Human capital inequality and income inequality: developing countries. Pertanika Journal of Social Sciences & Humanities, 21 (spec. Aug.). pp. 189-200. ISSN 0128-7702; ESSN: 2231-8534


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 per capita 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 per capita 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.

Download File


Download (382kB) | Preview

Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: Universiti Putra Malaysia Press
Keywords: Human capital inequality; Income inequality; Generalized Method of Moment (GMM); Developing countries
Depositing User: Nabilah Mustapa
Date Deposited: 27 Apr 2015 02:42
Last Modified: 21 Sep 2015 02:09
URI: http://psasir.upm.edu.my/id/eprint/28326
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item