Castelló-Climent, A. & Doménech, R. (2014) “Human capital and income inequality: Some facts and some puzzles“, VoxEU Organisation, 23 April.
Most developing countries have made a great effort to eradicate illiteracy. As a result, the inequality in the distribution of education has been reduced by more than half from 1950 to 2010. However, inequality in the distribution of income has hardly changed. This column presents evidence from a new dataset on human capital inequality. The authors find that increasing returns to education, globalisation, and skill-biased technological change can explain why the fall in human capital inequality has not been sufficient to reduce income inequality.
- International Monetary Fund (2014) “Fiscal Policy and Income Inequality“, IMF Policy Paper, 23 January.
- Ostry, J., Berg, A. (2014) “Treating Inequality with Redistribution: Is the Cure Worse than the Disease?”, iMFdirect Blog , 26 February.
- Hetschko, C., Knabe, A. & Schöb, R. (2014) “Changing Identity: Retiring From Unemployment”, The Economic Journal, 124: 149–166, March.