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The effects of human capital inequality on income inequality in developing countries


Mahmood, Suraya and Mohd Noor, Zaleha and Law, Siong Hook (2012) The effects of human capital inequality on income inequality in developing countries. In: 3rd International Conference on Business and Economics (3rd ICBER 2012) , 12-13 Mar. 2012, Golden Flower Hotel, Bandung, Indonesia. (pp. 2218-2230).


This paper examines the effect of human capital inequality on income inequality in Developing Countries using Gini coefficient as a consistent measurement for both of inequality. This study also adds a few control variables such as Globalization Index, GDP per capita and total of population using dynamic panel data Generalized method of Moment (GMM) for 55 countries over the period of 1970-2010. The empirical results show that, human capital inequality is significant with income inequality. However, other control variables are insignificant with income inequality except GDP per capita. Thus, to reduce income inequality and to give citizens equal opportunities, governments of developing countries and policymakers need to pay attention to human capital inequality.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Economics and Management
Notes: Full text are available at Special Collection Division Office.
Keywords: Human capital inequality; Income inequality; Generalized Method of Moment (GMM); Developing Countries
Depositing User: Samsida Samsudin
Date Deposited: 05 Aug 2014 01:54
Last Modified: 15 Feb 2016 08:08
URI: http://psasir.upm.edu.my/id/eprint/31833
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