Does education affect income distribution in developing countries?

Abstract EN

The research aims to measure the impact of the level of education on income distribution in developing countries.

Panel data for 2003-2017 were collected for a 24 developing countries, using ARDL model.

The estimated model took into account the impact of population growth, unemployment rate, and per capita GDP, in addition to the average years of schooling as explanatory variables for income shares held by, the highest 20% , the middle 40% , and lowest 40% within three models.

It was found that education is an important determinant of income distribution in developing countries in the long run, as it contributes to reducing the share of the rich class, and increases the share of the middle and poor classes.

As for the short-run, it has not been proven that there is a specific effect of education on income distribution.