Summary
This paper questions the usefulness of econometric specifications in which current school enrollment structure is included as a regressor in income distribution functions. Theoretically, the postulate of current school enrollment pattern affecting present income distribution is argued to be implausible. Empirically, using a sample of 70 countries, it is shown that, in terms of R z and plausibility of the estimated coefficients, specifications that treat school enrollment structure as the dependent variable with income inequality as one regressor, are superior to those that have income inequality as the dependent variable and school enrollment structure as one of the regressors.
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Jan C. Stewart provided excellent research help. The author alone is responsible for all errors and deficiencies.
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Ram, R. Inequalities in income and schooling: A different point of view. De Economist 129, 253–261 (1981). https://doi.org/10.1007/BF01705811
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DOI: https://doi.org/10.1007/BF01705811